Total PNG gas project viable in carbon-less economy: Smirk

By GLORIA BAUAI
TOTAL PNG’s gas project is still viable despite the world’s transition to a carbonless economy, says Westpac’s senior economist Justin Smirk.
Smirk said the reality was that the western world including China had been shaping and moving their economy towards decarbonisation.
He said existing policies still could not get down to complete net zero, as gas was still being used significantly, even in net zero environments, especially for power generation.
The topic was discussed with the Lae business community yesterday as he delivered Westpac’s economic briefing, stressing that investor confidence was still holding up in Papua New Guinea.
A question was raised on Total’s project and its access to internet funding.
Smirk said he was not surprised with issues surrounding this as more banks were becoming conscious with their carbon footprint through their lending.
He said Westpac for one was ensuring that any lending had to help them reduce their carbon footprint.
However he explained that it did not mean that Total’s project would not pick up.
“They just have more room to think about funding and how they will go about doing it,” he assured.
“Look at the United States, now the world’s biggest oil producer, even with the Biden administration changing rules to make it tougher.
“Demand for gas is continuing to rise, and it’s coming through China, Japan, and even Germany, who have been closing nuclear power plants in their efforts to go green,” he said.
“Total can still find funding.”