Sonk hails signing of LNG project

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THE signing of a gas agreement by the Government and the joint venture partners brings the country’s second liquefied natural gas project a step closer to fruition, an official says.
Kumul Petroleum Holdings Limited (KPHL) managing director Wapu Sonk said the execution of the agreements was a “critical milestone”.
“(It) now allows the joint venture partners to develop the Elk/Antelope fields in Gulf,” Sonk said.
“KPHL will become a party to the gas agreement when we exercise our back-in rights when the development licence is issued. So we have been working with the other stakeholders negotiating the agreement, as is provided for in the Kumul Act.
“We are particularly pleased that the joint venture partners have agreed to assist Kumul Petroleum by way of carry and that brings certainty to KPHL exercising its full equity entitlement of 22.5 per cent, of which two per cent will be carried by KPHL for the landowners. This will allow benefits to flow though KPHL to the State from the beginning of production.
“We are also delighted that this gas agreement includes provisions to supply gas to the domestic market at competitive prices, as well as providing conditional access to the project pipelines to other developers.
“The inclusion of these two items is critical for KPHL’s unrelenting electrification campaign to help the State reach its target of connecting 70 per cent of households by 2030.”
Three downstream operating agreements had already been signed before the gas agreement signed yesterday – Facilities Access Agreement, the Downstream Operations and Cooperation Agreement and the Cost Sharing Agreement.