Papua New Guinea's Kumul Petroleum Holdings Limited (KPHL) plans to supply liquefied natural gas (LNG) from the coast of Huon Gulf district, to power the upcoming Wafi-Golpu mine project in Bulolo district, Morobe province.
Its two business models currently being pursued are, the Floating Storage Regasification and Power(FSRP) unit and the Labu Special Economic Zone project, jointly estimated to cost up to $1.2Bn (around K3Bn).
KPHL General Manager Power and Renewables, Ephraim Tammy, announced this last week to the Lae business community.
“The two projects that we are involved in will provide an avenue for expansion in Lae, they are multimillion dollar projects and we have plans and have scoped out and want to build a LNG hub to drive this agenda for the State, Morobe, the landowners and all stakeholders,” says Tammy.
“The first is a Floating Storage Regasification and Power (FSRP) unit, it’s a ship to be permanently parked outside of Labu and be able to send gas, and our main foundation target or market is Wafi-Golpu mine project, but we are looking at different options, any access we want to provide to Lae as the industrial hub of PNG,” says Tammy.
“FSRP can provide 200 megawatts of power from the ship up to Wafi-Golpu or the access can be piped back to Lae and tt will give reliable costs, competitive energy solutions for Lae. It will give the local gird access power and will give revenue to the state, Morobe provincial government and local landowners,” he says.
“Next one is the Labu Special Economic Zone (LSEZ), this project could be a game changer, it will have a port developed at Labu-Tale village, and off the FSRP, we can have 75 megawatts powering the Labu SEZ,” Tammy said.
“We see that area as a chance for us to really bring some development that we can all see and be part of, the Labu SEZ is estimated to provide up to 20,000 jobs and will give you access to manufacturing and downstream processing, and can increase the Gross Domestic Product (GPD) of the country."
“We know there is an issue in Lae with power, we see Lae as the market that we can develop for energy and also bring more development to this country and with these projects we aim to help the power reliability that we have in Lae,” he said.
Picture: MPs listening during the KPHL dinner last Thursday.
FM 100 / Pacific Mining Watch
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