PAPUA New Guinea’s budding petrochemical industry will have access to natural gas supplies from projects other than PNG LNG, National Petroleum Company PNG (NPCP) managing director Wapu Sonk says.
He said the industry could not seek supplies from PNG LNG because they were already committed to other suppliers.
Sonk said this during the signing of a recent memorandum of understanding (MoU) between the state owned NPCP and Japanese company Sojitz Corporation, for the establishment of a methanol plant at Konebada Petroleum Park near Port Moresby.
“We’ll look at new projects coming down the line. Projects that are on-stream … in the pipeline,” he said.
Sonk said any petrochemical project would need the Government’s support.
“As a country, if we wanted to diversify and develop the industrial base, we needed to prioritise the development of our gas, LNG and power generation as first priority, followed by other options such as petrochemical industry.
“It means that the governing agencies that are involved, Treasury Department, Department of Petroleum and Energy and State Solicitors Office – those key agencies must now lay the foundation for this key project to happen.
“I think the most important is the cash price. Gas itself must be priced right. The challenge now is really back to the Government.
“I think that’s sort of the core of the next steps, and the next steps can only happen if we get it right. We do have the resource, we do have the right amount of gas that’s been discovered so far, and would enough for couple more trains in PNG and couple more enough for power generation in PNG, enough for at least one more methanol plant,” Sonk said.
He said the industry could not seek supplies from PNG LNG because they were already committed to other suppliers.
Sonk said this during the signing of a recent memorandum of understanding (MoU) between the state owned NPCP and Japanese company Sojitz Corporation, for the establishment of a methanol plant at Konebada Petroleum Park near Port Moresby.
“We’ll look at new projects coming down the line. Projects that are on-stream … in the pipeline,” he said.
Sonk said any petrochemical project would need the Government’s support.
“As a country, if we wanted to diversify and develop the industrial base, we needed to prioritise the development of our gas, LNG and power generation as first priority, followed by other options such as petrochemical industry.
“It means that the governing agencies that are involved, Treasury Department, Department of Petroleum and Energy and State Solicitors Office – those key agencies must now lay the foundation for this key project to happen.
“I think the most important is the cash price. Gas itself must be priced right. The challenge now is really back to the Government.
“I think that’s sort of the core of the next steps, and the next steps can only happen if we get it right. We do have the resource, we do have the right amount of gas that’s been discovered so far, and would enough for couple more trains in PNG and couple more enough for power generation in PNG, enough for at least one more methanol plant,” Sonk said.