‘Power vital to economical, social development’

POWER is fundamental to economic and social development and underpins activities which improve lives Oil Search Limited country chairman Gerea Aopi says.
Oil Search and Kumul Energy Limited own NiuPower, an independent power provider, which last Friday signed a power purchase agreement with PNG Power Ltd to use gas to provide electricity.
Aopi is a director.
The NiuPower power station located near the PNG LNG project plant is the country’s first dedicated grid-connected gas-fired power plant.
“Given that the PNG LNG project is exporting significant volumes of gas to power Asia, we believe it is important for us to help find solutions for PNG’s power dilemma,” he said.
“The signing of the power purchase agreement demonstrates our commitment.
“Additionally, partnerships between the private sector and the Government like NiuPower will ensure we address some of the most significant development and social issues for the people.”
NiuPower was established in 2017 by Oil Search and Kumul Petroleum Holdings Limited to focus on domestic power production.
The Port Moresby power station is NiuPower’s initial investment of around US$100 million (K340 million).
The power station can deliver any level of power dispatch – from 6MW to 58MW – to meet PNG Power’s demand.
Using locally-produced gas instead of imported fuel and diesel will reduce the environmental impact from power generation.
Six high-efficiency reciprocating gas engines ensure high thermal efficiency compared to other gas-fuelled generation options resulting in less fuel, lower costs and reduced emissions.
The development of the power station began in August 2017.
More than 90 per cent of the workforce involved in the plant’s development are PNG citizens.