Production dependent on energy

THE energy sector is a contributing factor that influences the high cost of downstream production of foods and services in the country, says International Trade and Investment Minister Richard Maru.
Speaking at the final day of the Petroleum and Energy Conference in Port Moresby yesterday, Maru said: “Without a proper regulator of the energy sector, the cost of electricity for producing downstream manufactured goods like tinned fish is still too expensive.
“The cost of doing business in PNG is still too high and electricity is a cost added to the price of manufactured goods.”
Maru explained that countries like Thailand downstream produced tinned fish at half the cost PNG produced the same product, and marketed their tinned fish to a quarter of the total cost of production to countries like Australia.
He acknowledged that the country’s energy regulator National Energy Authority (NEA) had only been created in 2020, and as the regulator, the policy to guide the development of the country’s energy production sector must be critically assessed by NEA.
Maru believes in terms of exports the cost of energy had not come down and blackouts were a common occurrence in the country.
He explained that the problem provinces in the country had with attracting investors for business opportunities was partly due to the frequent power outages that had become a common thing in outside provinces.
“The global security issues countries around the world are talking about today is food energy and climate security,” Maru said.
He explained that the country, through Kumul Petroleum Holdings Limited, had decided to not only focus on the mining and petroleum sector, but also support the energy sector, which was the reason the Government had set up NEA as the regulator.
Maru believes the country’s sustainable energy extracts like geothermal from solar, hydro generated from rivers and liquefied natural gas are the key areas of sustainable energy development the Government is expected to develop.