Parkop raises concern over blackouts, fuel price

NATIONAL Capital District Governor Powes Parkop has raised concern about the constant power outages, prolonged landowner identification process, loss of goods and services tax and high cost of fuel which he said remained an ongoing problem in the city and country at large.
He asked Petroleum Minister Dr Fabian Pok in Parliament when the gas agreement would be reviewed so that gas from the PNG LNG project be available for domestic use.
“The fact is that all cars and planes can use gas to power them and if we use our own gas, it will cut down fuel prices and consequently, the cost of doing business in Papua New Guinea,” Parkop said. “In the first LNG project there is no free-carry equity either for State or the landowners and this is highly immoral. It means we don’t own the gas. And we had to get loan to pay for our equity which resulted in the USB Loan.”
Pok said the review was not possible as the operator, ExxonMobil, had not fully extracted the quantity of gas, 10.5 trillion cubic feet (TCF) which should dictate the review as agreed to.
“To trigger the review, gas extraction must pass 10.5 TCF,” Pok said “This is where the problem is.”
Pok said the Papua LNG would reserve 10 per cent for local use.