Power boost

 A NEW power plant will be built by ExxonMobil in its project site outside Port Moresby to boost electricity supply to the capital city, the company says.

It is part of a memorandum of understanding signed last month with the Government to supply 25 megawatts in June, and an additional 50 megawatts in the next 12 months.

ExxonMobil will supply 20 million cubic feet of domestic natural gas a day from the liquefied natural gas project, for up to 20 years.

A spokesperson for ExxonMobil said “we will be installing infrastructure on our site so that PNG Power can connect their facilities into ours to provide the initial power supply from our existing facilities”

“After that, we will support PNG Power in relocating its generator from Kanudi to a site near the LNG plant (land owned by the project, but outside the LNG plant). The generator will be there for technical reasons.”

The spokesperson could not disclose the total cost of the power-generation operation. It is understood to be around K100 million.

Wapu Sonk, the managing director of the National Petroleum Company, a partner in the LNG project, said it was cost effective to build the power plant close to the gas source.

“If it’s far, the cost of the pipeline and other infrastructure goes up,” he said.

“Also, it shortens the construction time, hence quicker delivery of power into the Port Moresby grid.”

Prime Minister Peter O’Neill said last month that the 20 per cent boost in power supply to Port Moresby should be in place before the Pacific Games in July.

He said it would ensure that the electricity supply “is reliable to our visitors but most importantly to residents and customers in the city”.

The agreement included the supply of four megawatts of electricity to boost supply in Hela and Southern Highlands.

The current power load in Port Moresby is 120 megawatts.