Project needs gas: Sonk

THE development of a petrochemical project outside Port Moresby is impossible at this stage as it needs gas, Kumul Petroleum Holdings Limited managing director Wapu Sonk says.
He said there was arrangement in place but there was lack of gas.
Sonk said this yesterday when briefing the media on the inaugural Petroleum and Energy Summit which begins today at the Stanley Hotel in Waigani.
“We have an arrangement in place. We have a joint venture operating but the problem is that we have to get gas from Western, offshore Gulf, to come into Port Moresby where there is deep water,” Sonk said.
“We are looking at other options as well. But the problem is we have to bring the gas out.
“That is why the strategic pipeline, the Western province pipeline is important.
“And it is important in the sense that it must be owned by the Government, through the National Oil Company – Kumil Petroleum Holdings Limited.
“That’s why we are promoting the Western province pipeline so that the petrochemical plant, the power projects, other projects other the LNG can happen.”
Gas projects coordination office director Peter Koim said the PNG LNG project did not have provision for gas to be made available for petrochemical or power generation projects.
“That’s the difficulty we have been facing. The Government is now talking to ExxonMobil, Total and other leading key players and they are aware that they have to make gas available through domestic market obligation,” Koim said.
“So that gas can be made available to do petrochemicals or power generations and the joint venture arrangements can materialise.
“In the next gas agreements, we will factor the gas in and that gas will be available in any of the new projects that come on board.”