OUTGOING Petroleum and Energy Minister Minister Nixon Duban says downstream processing of liquefied natural gas should be a priority of the Government.
He stressed this during the handover ceremony with his successor Ben Micah yesterday.
“We would like to see this country benefitting more from new projects that are coming on board,” Duban said.
“We think that the department has studied outcomes of past projects.
“We must as a nation make strong decisions to allow maximum benefit for Papua New Guinea.
“We have put together a domestic marketing policy, in terms of distribution, that is before the National Executive Council.
“This domestic marketing obligation issue is in relation to the gas reservations, and what is the quality and quantity that this country must have.
“While we respect the industry, and the declining oil prices, Papua New Guinea needs to control a certain percentage for local downstream processing.
“This is a strong call, as I leave the ministry to the new minister, push for DMO (domestic market obligation) as we need to see downstream processing in this country.
“We want to see petrochemical power plants powered from our gas.
“A policy submission is before Cabinet.”
Duban also said national content was an issue that the department had embarked on.
“We’ve got a submission before the NEC,” he said. “Also under the ministry, we control the Konebada Petroleum Park.
“That particular park has not done anything except being a model that has not really served its purpose since being established.
“Why? Because there’s no cheap gas going to the park.
“A submission is before NEC for a National Precint Authority that needs to be established, so that when you have projects around the country, you have petroleum parks that are connected like a department.”
He stressed this during the handover ceremony with his successor Ben Micah yesterday.
“We would like to see this country benefitting more from new projects that are coming on board,” Duban said.
“We think that the department has studied outcomes of past projects.
“We must as a nation make strong decisions to allow maximum benefit for Papua New Guinea.
“We have put together a domestic marketing policy, in terms of distribution, that is before the National Executive Council.
“This domestic marketing obligation issue is in relation to the gas reservations, and what is the quality and quantity that this country must have.
“While we respect the industry, and the declining oil prices, Papua New Guinea needs to control a certain percentage for local downstream processing.
“This is a strong call, as I leave the ministry to the new minister, push for DMO (domestic market obligation) as we need to see downstream processing in this country.
“We want to see petrochemical power plants powered from our gas.
“A policy submission is before Cabinet.”
Duban also said national content was an issue that the department had embarked on.
“We’ve got a submission before the NEC,” he said. “Also under the ministry, we control the Konebada Petroleum Park.
“That particular park has not done anything except being a model that has not really served its purpose since being established.
“Why? Because there’s no cheap gas going to the park.
“A submission is before NEC for a National Precint Authority that needs to be established, so that when you have projects around the country, you have petroleum parks that are connected like a department.”