Gas projects coordination office director Peter Koim told The National that the country’s LNG’s production cost is also less than other LNG producing countries and the country’s position makes it even more attractive in Asian markets.
“The other good thing about our LNG is that the heating power or strength of our LNG is much better than any LNG in the region,” Koim said.
“The quality for our LNG is far more superior because it’s got much stronger heat. We haven’t signed any contracts yet but they know this project (Papua LNG) is coming on stream.”
Koim said a key factor customers look at is the cost of production.
“And cost of transportation, and then cost of storage. All of these costs, when you add them, and when you are selling a unit of electricity or whatever when you burn the LNG, all of those costs are added in,” he said.
“The cost of production in PNG is a lot less than the cost for producing in say, for instance, Australia.
“On top of that, the cost of sending an LNG tanker from Papua New Guinea to Tokyo, or Taipei, distance is shorter from Papua New Guinea. We’ve got superior quality LNG by way of producing the heat, we’ve low cost per unit so strategically we are well positioned for the Asian market.
“So the basic aim of the summit (inaugural petroleum and energy summit held early this year) was to tell the customers that we have a project coming and the contracts will be coming as soon as the project goes into what we call Feed (front end engineering design), project engineering and design.” The National