Energy
From The Report: Papua New Guinea 2015
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The long wait for the Papua New Guinea liquefied natural gas (LNG) project is now over, and the energy sector is transforming from a major investment vehicle into a primary revenue generator for the economy. In fact, the project is expected to have so much of an impact during its first full year of LNG exports that PNG was projected to lead all Asian economies in GDP growth in 2015, at nearly 15%, with the Asian Development Bank forecasting an equally robust expansion. While the government has had to revise its budgetary forecast for GDP growth from 15% to 6.9% due to the decline in oil prices, the optimism generated by the PNG LNG project has encouraged further investment. PNG’s plentiful untapped reserves and resolve to become a major regional gas exporter look to provide ample incentive and means to move forward with at least one additional LNG project.

This chapter contains interviews with Grant Christie, Vice-President and Country Manager, Talisman Energy, Repsol Group; Philippe Blanchard, Managing Director, Total PNG; Brent Emmett, CEO, Horizon Oil; and Lesieli Taviri, General Manager, Origin Energy.

Articles from this Chapter

Overview

Exploration and development in PNG reveal new opportunities
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The long wait for the Papua New Guinea liquefied natural gas (LNG) project is now over, and the energy sector is transforming from a major investment vehicle into a primary revenue generator for the economy. In fact, the project is expected to have so much of an impact during its first full year of LNG exports that PNG was projected by the Economist Intelligence Unit to lead all Asian economies in revenue growth in 2015 at nearly 15%, with the Asian Development Bank forecasting an equally robust…

Interview

Grant Christie, Vice-President and Country Manager, Talisman Energy, Repsol Group: Interview
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Interview:Grant Christie How does the operating environment for the oil and gas industry in Papua New Guinea compare with those of other markets in the region? GRANT CHRISTIE: The three things to consider when assessing an operating environment for projects in oil and gas are the quality of the rocks, proximity to markets and commercial conditions to support execution, such as fiscal terms and the availability of a skilled and competitive labour force. Regarding the first, we strongly believe…

Analysis

The new LNG project kicks off greater interest in PNG
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The country’s limited energy needs and its rapidly expanding supply of gas have led policymakers to pursue the somewhat obvious path of focusing on the export market via shipments of liquefied natural gas (LNG). Although the price of energy has declined considerably since the initial plans for the Papua New Guinea LNG project were first drawn up, gas remains the country’s top foreign currency earner, with future potential earnings having the power to transform the economy. With one major LNG…

Interview

Philippe Blanchard, Managing Director, Total PNG: Interview
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Interview:Philippe Blanchard How is Papua New Guinea’s second liquefied natural gas (LNG) project at the Elk-Antelope fields expected to influence the local gas industry? PHILIPPE BLANCHARD: We are committed to moving this project forward, as we understand the socio-economic impact it can have on the development in PNG. While the appraisal programme is ongoing, the joint venture has made other efforts to further progress on the project: securing financing, undertaking gas marketing and…

Interview

Brent Emmett, CEO, Horizon Oil: Interview
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Interview: Brent Emmett How would you assess the investment framework for the oil and gas industry in Papua New Guinea, particularly in the area of gas-to-electricity? BRENT EMMETT: Several good policies have been introduced over the years to reform the energy sector in PNG, but there has been a lack of consistency in implementing them on the part of the administration, and consequently some of them have been laid aside. For instance, domestic obligation gas – a concept the government introduced…

Analysis

PNG expands electricity coverage with new investment
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Continued economic growth in recent years is driving demand for electricity across PNG, straining the capability of the country’s primary grid networks. The widely dispersed population and geographic challenges continue to pose formidable barriers to increasing electrification, while the small but growing capacity serving the main urban areas is in need of expansion to meet growing power needs. Total national power generation capacity currently sits at around 582 MW, according to Asian Development…

Interview

Lesieli Taviri, General Manager, Origin Energy: Interview
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Interview:Lesieli Taviri Is a lack of energy affecting the socio-economic development of Papua New Guinea? LESIELI TAVIRI: Recent studies by the UN have highlighted the negative effects of the energy shortage on vital sectors such as health and education, and the biggest challenge for PNG is to improve the country’s rural electrification standards, which remain well below the regional average. PNG Power currently reaches approximately 12% of the country’s households and only around 15%…

Analysis

Search for LNG in PNG continues
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A common thread to Papua New Guinea’s two largest energy projects to date – the PNG liquified natural gas (LNG) mega-project and the upcoming Elk-Antelope play – is that while both are now controlled by energy supermajors Exxon and Total, neither was originally discovered by their current operators. Like the development of new “elephant” projects across the globe, exploration for new major oil and gas plays is often left to smaller oil and gas firms, which operate on much smaller capital…

Analysis

Expanding the role of renewable energy in PNG
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For a country that relies heavily on hydrocarbons exports as a major revenue stream, Papua New Guinea has an electricity sector surprisingly reliant on renewable energy. This is more from necessity than from any overriding imperative to develop clean energy; PNG has little in the way of tailored incentives like feed-in tariffs or a “green certificate” scheme for producers of clean energy. Instead, the wide availability of renewable sources – mainly hydro and geothermal – combined with the…