Study to end by February

 By GYNNIE KERO

A Japanese investor proposing for a methanol project outside Port Moresby says it will conclude the feasibility studies on the project, its site and overall costs by mid next month.

Sojitz Corporation project leader Naotsugu Koinuma told The National last Friday that methanol would contribute to the local economy once Sojitz established the plant in the capital city. 

Methanol is made from natural gas (methane) in two reactions: Steam reforming and synthesis. 

Methanol or methyl alcohol (CH3OH) is a colourless liquid widely used for a variety of industrial applications.

Petroleum and Energy Minister Nixon Duban, during a visit to the proposed project site last August, had said “it is in the government’s interest to conduct feasibility study to ensure that we have cheaper gas available for petrochemical companies.”

Koinuma said: “Natural gas needed for the project would be supplied from a pipeline from the PNG LNG under arrangement with the State.

“Our methanol project is going to be a joint venture company between State and Sojitz. Today most gas produced from Papua New Guinea is exported and very little or nil is consumed in the domestic market. Now, the State is trying to allocate more gas for domestic use.

“Our project is in line with the government’s policy to utilise gas for downstream processing to create domestic industry and create big number of job.

“We are aware of the recent announcement that the State is successful in acquiring gas for the domestic power project.

“Hopefully, additional gas for our methanol project will become available soon. Since gas will come from the PNG LNG site, so we will have a site near the PNG LNG to build the plant, then process the natural gas into methanol. We will be constructing the jetty about 2.5km for shipping out methanol products,” Koinuma said.

He said Sojitz had proposed for a second plant for urea – the fertiliser product from natural gas.

“So two plants according to our proposal, we will invest in together with the state. The total project cost is around US$800 million (K2.61b).

“In case of PNG, methanol will be consumed in either wood industry producing plywood or palm industry.