PNG to use own gas to meet local demand

PAPUA New Guinea will have some of its gas used to meet local demand, says Kumul Petroleum Holdings Limited managing director Wapu Sonk.
Sonk said to achieve this goal, KPHL would use the domestic market obligation for electricity generation as gas feedstock for the industry and to distribute the (liquefied natural) gas nationally.
“Kumul is keen to promote the domestic distribution of LNG in PNG, principally as fuel for electrification. This is so that heavy dependence on high sulphur fuel oil and diesel are minimised,” Sonk said.
“It is also an alternative to developing opportunities for new power generation.”
Kumul and Oil Search Limited have completed a concept study on domestic LNG distribution.
The gas will come from the small stranded fields in Western. It will mean directly distributing LNG gas for PNG citizens rather than just exporting it to overseas markets.
“Above all, we will invest in, and encourage others to invest in the household and industry electrification programme,” Sonk said.
According to Sonk, the strategy directly supports the Government’s policy to supply power to 70 per cent of households as captured in Vision 2050.
It would also generate and supply power for the 58-megawatt gas-fired power plant outside Port Moresby.