Policy will make Papua LNG best facilitated project, says Pok

THE Papua LNG will be the best facilitated LNG project through a policy that is now keeping pace with all guidance and agreements, including the domestic market obligation, Petroleum Minister Fabian Pok says.
Pok was asked by National Capital District Governor Powes Parkop if a review could be done for the first PNG LNG project as many issues such as tax exemptions, GSTs, clan-vetting and landowner identifications process were pending.
Pok said there was no option for domestic market obligation to be used for electricity and petrochemical industry in the country in the first PNG LNG project agreement.
However, he said the Government had developed a policy framework that would allow for domestic market obligation negotiations. The first of such policy arrangement was the 10 per cent gas for the country’s needs.
“We will have only two types of electricity sources. They are through gas and hydro power projects to supply power needs in the country,” Pok said.
He said this included the national content policy that would safeguard Papua New Guineans jobs and spin-off businesses. Through national content policy, the benefits would go back to Papua New Guineans.
“Also through the policy, many stranded gas fields will also be catered for through the third party access, an initiative to allow the stranded gas fields to pipe gas to the main existing pipes instead of building separate pipelines that would be too costly like the Stanley field in Western,” Pok said
“Total will also do the same to explore stranded gas fields to develop through the third party access.”
Pok said all these were missing in the first PNG LNG project which the Government was correcting.
Pok said a MOU review could be done to the PNG LNG project until it reached 10.5 tcf, but so far the company has yet to reach the 10.5 tcf.
Pok said the Government had emphasised with Total the need to carry out its landowner identification process and it was almost complete. That agreement will be signed in Kikori.
He said they expected to negotiate the best deal with Total, taking about 22.5 per cent equity for the State instead of financing it or paying for it by sourcing loans.