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PNG Gas projects have potential for local consumer

Staff Reporter | 5:14 AM |
 GAS projects in PNG's Western Province have the potential to produce gas for local consumption, a report says.
Facts Global Energy, in its article Energy Insights stated that in Western, gas from Stanley/Elavala/Tingu development could be supplied to towns in the Kiunga, Ok Menga and Frieda River regions, plus the Ok Tedi and Frieda River mines and alternatively, gas could be piped to markets nearby in West Papua.
However, it noted that limiting factor in each of these developments was market size.
The report highlighted that with regard to power generation, PNG had one of the lowest rates of electricity availability in the world. Only 8 per cent of the population has access to a power grid. This compares with indicative levels of Cambodia 30 per cent, Myanmar 50 per cent, and Indonesia 70 per cent. Where electricity is available in PNG, it is among the highest priced globally.
Facts Global Energy explained that the industry was constrained by supply limitations, blackouts and the lack of electricity was a major constraint on economic growth and social development for PNG’s population of 7.4 million, making electrification an obvious target for the Government.
Total installed electricity capacity in PNG was probably 600-700 megawatt (including privately-operated plants at mining operations). There was no national grid. Any additional power generation capacity is likely to be small and serve discrete locations.
It is therefore apparent that if significant scale development is to occur, LNG or a large gas-intensive industry like fertiliser or petrochemicals would be required.
Meanwhile, a report highlighting how emerging technologies have potential to save PNG more than US$5 billion (K138.8bn)) and reduce emissions by half was released by ANZ bank in Port Moresby on Tuesday.
The report included an extension of current electricity sector reforms and introduction of new, cheaper energy technologies such as solar PV, micro-hydro and biomass to replace PNG’s reliance on diesel generation.