Papua LNG decision soon: Kua
By HELEN TARAWA
AN announcement will be made next month whether the Papua LNG will be a stand-alone project towards design phase next year, Petroleum Minister Kerenga Kua says.
In response to questions on the status of the projects, Kua told The National that Total senior management and a Government delegation would be meeting next Thursday (Dec 10).
“If the decision is made, it will be positive for PNG because we will begin to see some early work going on,” Kua said.
“There will be cash flow for the country and it could have an impact in the gross domestic product for us.
“It’s a positive thing to look forward to so we will wait for the decision on Dec 10 or 11.
“We will make the announcement on whether we will delink Papua and P’nyang and make them separate stand-alone projects.”
The minister explained that this was the status of P’nyang and there was a lot of time to negotiate.
“The fact that we delink the two projects, it will not disadvantage P’nyang because whether you link it or delink it, the constructions phase of P’nyang is still four to five years away down the track,” he said.
“We have all the lead time here to negotiate a good contract, no need to rush because we don’t need a gas agreement for P’nyang for another four to five years yet.
“The construction for Papua has to start and complete before P’nyang connects so we still have a lot of time.” Kua said discussions with Exxon indicated there was opportunity for negotiations and there might be some good deals.
“There is still some promise there so we will continue to work on that,” he said.
Kua said Pasca was only the small project with less volume of gas and oil which was 100km south of Kerema town.
He said the estimated cost for construction is about K6.9 billion (US$2 billion) on a scale of PNG LNG which is K65bil (US$19bil) and Papua LNG which is K34.5bil (US$10bil). That’s quite small.
“In PNG US$2bil (K6.9bil) is a lot of money and negotiation is at a very advanced stage.
“We will announce a gas agreement as soon as we can.
“Our concentration on the negotiations has been compromised by the disturbance of politics but was are monitoring it.”
Kua dismissed claims that investors were leaving, adding that it was the state’s desire to reform legislation.
7 comments
The agreements on the Papua LNG must be made known to the general public to understand what benefits the government planning to get out of this deal compared to the deal made with the PNGLNG given that Minister Kua was involved in that deal too.
Development of Papua LNG must not be rushed since proper planning must incorporate views of various stakeholders and that includes the local indigenous population who are the most important stakeholders amongst all. I am from a tribe that purports to own the site that is being planned to host the CPF and I and my tribe have never been consulted as to how and where the processing of the final product should be sited. If we be consulted we would suggest a floating LNG processing plant within our electorate.
Anthony W Ipai, Koriki Tribe, Baimuru LLG, Kikori District, Gulf Province.
Can we be able to have the production location area for the new Papua LNG Project side of its own in Baimuru District Area instead of joining the current Pipeline which runs all the way from Southern Highlands to Central Province (Papa/Lealea ) and the reason is very clear that , the new Production Location will provide employment opportunities to the project impact areas people like – Baimuru , Ihu , Kikori plus the rest of the people around PNG and again we want the production location area to be in Baimuru area . Thankyou .
How it start sooner because Papua LNG is currently under a Petroleum Retention License. Only when the PRL ends in May 2020 then they can apply for a PDL. That is when they can also submit their development plans which takes 6 to 12 months to review before a decision is made.
Who are you trying to please or kid here Hon Kerenga Kua.
Anthony, with the current pmjm government in place, i believe you will be consulted and you will get a better deal. We the other landowners see a light at the end of the tunnel when it comes to involving the landowers unlike the previous pms/governments. Hold your head high brother.
Minister Kua ,on whose interest and have you consulted the lOs and people of Western Province to link P’nyang with Papua LNG. The people of Western want P’nyang to be an stand alone project .
We will not settle for anything but stand alone project for P’nyang .
Hope you keep this in your mind .You cannot think that your can get your way around people to sign documents. Please respect people of Western people , they must be consulted before any decision.
P’nyang is a multi- billion dollars project. It is not a small project to bring in link concept with Papua LNG. P’NYANG LNG MUST BE DELINK AND NO LINK TO PAPUA LNG.
IN THIS;
1. MORE WORK AND CONSULTATION MUST EVENTUATE WITH LOS AND WESTERN PROVINCE.
CONSULT OUR PEOPLE, LAND OWNERS AND WESTERN PROVINCIAL GOVERNMENT.
2. HON KERENGA KUA, DID THE GOVT ALLOCATE DEVELOPMENT FUNDS IN THE BUDGET FOR P’NYANG? OR JUST A SWEET TALK…. DEPEND OR RELY ON LICENSE APPLICANT TO FUND EVERYTHING.
3. HAVE YOU AND MINISYRY VETTED DUE PROCESSES AND SYSTEMS WITH DELIGENCE? THERE ARE MORE LEGACY ISSUES WITH PNG LNG PROJECT. THE CURRENT GOVT CAN’T REPEAT THOSE MISTAKES. SO GET IT RIGHT THIS TIME.
4. IS IT CRIME TO CANCEL EXXON MOBIL’S APPLICATION TO PDL 13 AND TENDER TO NEW DEVELOPER FOR SUCCESSFUL BIDDER TO GRASPE?
IS EXXON, THE ONLY BEST DEVELOPER IN THE WORLD, THAT YOU DON’T WANT TO IT GO? M SURE, THERE ARE MANY OTHER BEST CORPORARIONS THAT CAN TAKE ON BOARD OUR INTEREST FOR FAIR TAKE IN OUR LNG PROJECTS DEVELOPMENT BENEFITS SHARING.
IT WOULD BE BETTER TO CANCEL EXXON’S APPLICANT AND AWARD TO NEW DEVELOPER FOR P’NYANG GAS PROJECT DEVELOPMENT ON TIMELY MANNER FOR FAIR DISTRIBUTION OF DEVELOPMENT WITHIN THE NORTH WEST HIGHLANDS REGION.
My people have suffered enough, Hon Kerenga Kua, be considerate and fair play…in executing development agreements.
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