Energy.
From The Report: Papua New Guinea 2012
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The energy sector in PNG, which has seen declining production for decades, is set to become a major driver of the economy as new investments come online. Gas is now the focus, with the $15.7bn ExxonMobil-led PNG LNG project due to start production in 2014. The megaproject has driven construction growth and set off a real estate boom in the nation’s capital thanks to an influx of foreign contractors and consultants. Oil investment is also picking up: given falling production at PNG’s mature fields, companies are exploring hard-to-reach oil fields, and license approvals by the regulator are at a peak. Meanwhile, the state-run PNG Power is battling geographic and funding obstacles to expand access to electricity.

This section features interviews with Peter M Graham, Managing Director, Esso Highlands; Phil E Mulacek, Chairman and CEO, InterOil; and Tony Koiri, CEO, PNG Power.

Articles from this Chapter

Overview

Land of plenty: History, tradition and a diverse range of natural resources
OBG
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Occupying the eastern half of the island of New Guinea and hundreds of adjacent smaller islands, Papua New Guinea is an important exporter of metals ( particularly gold and copper) and agricultural products such as coffee and palm oil. The country is also set to become a major exporter of gas, which should significantly increase the size of the economy. The largely rural-based population is highly diverse, being made up of thousands of distinct communities that together account for around…

Overview

Land of plenty: History, tradition and a diverse range of natural resources
OBG
plus

Occupying the eastern half of the island of New Guinea and hundreds of adjacent smaller islands, Papua New Guinea is an important exporter of metals ( particularly gold and copper) and agricultural products such as coffee and palm oil. The country is also set to become a major exporter of gas, which should significantly increase the size of the economy. The largely rural-based population is highly diverse, being made up of thousands of distinct communities that together account for around…

Overview

What lies beneath: New exploration and production to bring the sector back to the fore
OBG
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After a period of decline, Papua New Guinea’s hydrocarbons industry is preparing for a dramatic comeback, with billions of dollars of investment flowing into exploration and production. The first of several planned large-scale liquefied natural gas (LNG) production and export projects is set to come on-line in 2014. The electricity sector has been largely static since the Electricity Commission Privatisation Act of 2002, which transformed the incumbent PNG Electricity Commission into its…

Interview

OBG talks to Peter M Graham, Managing Director, Esso Highlands, subsidiary of ExxonMobil
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Interview: Peter M Graham How is the completion of the final construction phase of ExxonMobil’s PNG liquefied natural gas (LNG) project progressing? PETER M GRAHAM: According to the schedule we set out when the project was appropriated, we are on time for delivering the first LNG in 2014. To give you our progressive milestones that have been achieved so far, the project is in its third year of construction, and 2012 is our peak year of construction activity. The project is just over 50% complete…

Analysis

A bright idea: Plans to extend the national grid and provide power to every province are under way
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A rapidly expanding population and the corresponding strong economic growth are putting increasing pressure on Papua New Guinea’s overstretched power sector. Already registering annual growth in power consumption of around 5%, according to Chris Bai, executive advisor at PNG Power (PPL), demand is only expected to rise in the coming years. “The population has increased substantially, and rapid urbanisation means use of energy is rising,” John Cholai, the general manager of Origin Energy,…

Interview

OBG talks to Tony Koiri, CEO, PNG Power
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Interview: Tony Koiri What are PNG Power’s immediate priorities in the current economic environment? TONY KOIRI: We are a vertically integrated organisation, starting with power generation down to delivering to our customers. As such, our top priority at the moment is to increase generating capacity. In doing that, we are looking for opportunities to leverage the country’s significant water resources without damaging the environment. Sometimes people forget that hydropower is very economical,…

Analysis

Game changer: A new LNG project is expected to have a huge impact on the economy
OBG
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Perhaps no other project has had greater expectations riding on it than the Papua New Guinea liquefied natural gas (PNG LNG) venture, the largest single investment in the country’s history. It is hoped that the $15.7bn investment will enrich not only the coffers of the participating firms and the government, but also aid the wider economy. The project has the potential to bring in $150bn by 2044, according to investment reports from the Commonwealth Business Council, while the 2012 government…