Gas project to bring in K8 billion into PNG Economy

 THE Pasca A oil and gas project in the Gulf of Papua is expected to bring in over K8.6 billion in direct revenue to the country over the life of the project, Twinza chairman Stephen Quantrill said.

Quantrill told the 2021 Mining and Petroleum Conference yesterday that a total of K500 million was expected to be paid as tax and royalties in a year.

He said a final investment decision (FID) on the project was expected in 2023.

“The Prime Minister noted that the country is open for business and, we are here and believe in PNG’s bright future,” he said.

“We are working to achieve alignment and certainty so that 2022 can be Pasca’s time to shine for PNG.

“This is an important project in scheme of the country’s economic future.

“Over the life of the project, we believe that the direct revenue to PNG would be over K8.6 billion resulting in over six per cent increase to PNG’s annual direct revenues over the life of the project.

“It has a forecast of expansion of the PNG economy through a multiplier effect of more than two to three times PNG’s share of direct project revenues.

“We expect to contribute K500 million annually to taxes and royalties.

“We have a development cost of about K5 billion.”

Quantrill said his company would spend about K600 million within Papua Nnew Guinea during construction and operating costs within Papua New Guinea would amount to about K400 million.

“There will be further benefits that will flow from the project with the expansion of the offshore resource industry as we are the first mover in that space to provide an opportunity in the development of adjacent assets and also with the ability to supply PNG with domestic liquefied petroleum gas.”

Quantrill said the project itself was a simple development in shallow water offshore.

“We can use industry-standard technology in a phased development with an initial extraction of liquids followed by the second phase of flouting LNG development in the second stage.”

The National / Pacific Mining Watch 

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