Energy
From The Report: Papua New Guinea 2017
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Papua New Guinea’s energy sector has undergone a dramatic transformation over the previous decades, with liquefied natural gas (LNG) becoming the sector’s biggest growth driver. The multibillion-dollar PNG LNG project is now operating well above nameplate capacity, and LNG export revenues are expected to remain a major pillar of the economy in the coming decades. Ongoing exploration activities will offer a clearer understanding of the country’s hydrocarbons reserves and further support plans to expand LNG production. Major international oil companies such as ExxonMobil and Total are looking to additional gas fields for new supply.

This chapter contains interviews with Peter Botten, CEO, Oil Search and Andrew Barry, Managing Director, ExxonMobil PNG.

Articles from this Chapter

Overview

Growth driver: Despite setbacks, ongoing developments provide a boost for the sector and the economy
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Papua New Guinea’s energy sector has undergone a dramatic transformation over the previous decades, with liquefied natural gas (LNG) becoming the sector’s biggest growth driver. The multi-billion-dollar PNG LNG project is now operating well above nameplate capacity, and LNG export revenues are expected to remain a major pillar of the economy in the coming decades. Ongoing exploration activities will offer a clearer understanding of the country’s hydrocarbons reserves and further support…

Interview

Running on gas: Peter Botten, CEO, Oil Search, on realising natural resource potential
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Interview: Peter Botten How will global liquefied natural gas (LNG) trends affect the industry in Papua New Guinea? PETER BOTTEN: The LNG market is undergoing a revolution: moving away from traditional long-term contracts into much higher volumes that are traded on the spot, or in other short-term markets. The world is becoming much more connected in terms of LNG sales, meaning that energy demand in Europe impacts prices in the Middle East and the Far East. In this way, the LNG market is linked…

Analysis

A plan for home: The country aims to retain more of its natural gas to meet rising domestic energy consumption
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Although Papua New Guinea has risen to become a significant regional exporter of liquefied natural gas (LNG) since the launch of commercial operations at the PNG LNG project in 2014, the country continues to deal with domestic energy challenges. The country’s electrification rate is the lowest among APEC members. Industrial expansion and value-added manufacturing, which will play an important role in diversified long-term development, have also been hampered by lack of affordable, reliable…

Analysis

Water works: Hydropower leads the way in providing renewable energy
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Papua New Guinea’s rugged mountainous highlands are ideal for hydroelectric power generation, and the government has been keen to capitalise on its abundant hydro resources as it develops new renewable energy projects. A large number of hydropower projects are under the management of Kumul Consolidated Holdings (KCH), the statutory body responsible for overseeing public infrastructure projects. They are planned for development under a public-private partnership (PPP) framework, a promising…

Interview

Energising productivity: Andrew Barry, Managing Director, ExxonMobil PNG, on the growing role of local companies in energy production
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Interview: Andrew Barry Where is there potential for more downstream processing in Papua New Guinea’s energy sector? ANDREW BARRY: We are very supportive of the government’s wish to explore more downstream opportunities for locally produced gas. There is gas entering the local market, and substantial room for more. We can see the value of making reliable, cheap power available to everyone because of the multiplier effect. This is particularly evident in Port Moresby, which is already feeling…