Energy
From The Report: Papua New Guinea 2018
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Although international oil and gas firms continue to face a challenging operating environment, economic expansion in Papua New Guinea has been driven by large-scale energy projects in recent years, with liquefied natural gas processing becoming an important catalyst for growth. Since the launch of the PNG LNG project in 2014, the country has witnessed a significant uptick in investment, with exploration, production, transportation and processing facilities receiving an injection of resources. However, there are a number of issues that need addressing, with power generation and domestic gas utilisation representing two key areas for further development.

This chapter contains interviews with Wapu Sonk, Managing Director, Kumul Petroleum; and Carolyn Blacklock, Acting Managing Director, PNG Power.

Articles from this Chapter

Overview

Catalyst for progress: Authorities make headway in harnessing energy potential, helping to drive macroeconomic growth
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Although international oil and gas firms continue to face a challenging operating environment, economic expansion in Papua New Guinea has been driven by large-scale energy projects in recent years, with liquefied natural gas (LNG) processing becoming an important catalyst for growth. Although investment has stalled somewhat since 2014, the launch of the PNG LNG project that same year saw exploration, production, transportation and processing facilities receive an injection of resources. However,…

Analysis

Regional powerhouse: Multiple projects in the pipeline to shore up the country’s position as a centre of energy production
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A number of final investment decisions expected in the short and medium terms have the potential to galvanise Papua New Guinea’s economy. State-owned oil and gas company Kumul Petroleum Holdings (KPH), is at the forefront of efforts to create an energy hub in the Western and Gulf Provinces, known as the Kikori Energy Hub. In addition, a number of international oil companies are working to develop new gas deposits, which have the potential to sustain PNG’s economy for decades to come. Gas Economy As…

Interview

Natural wealth: Wapu Sonk, Managing Director, Kumul Petroleum, on gas production targets and investment potential in the energy sector
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Interview:Wapu Sonk, Managing Director, Kumul Petroleum How do trends in the global liquefied natural gas (LNG) market affect sector development? WAPU SONK: The LNG market in Papua New Guinea has slowed down because of global oversupply. PNG nonetheless produces top quality LNG, and this is being recognised throughout Asia, where most of the demand is located. Our key partners are Japan, China and Taiwan, and they continue to buy LNG on both long-term and short-term contracts. Despite an…

Interview

Power priorities: Carolyn Blacklock, Acting Managing Director, PNG Power, on boosting access to electricity and the future generation mix
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Interview:Carolyn Blacklock, Acting Managing Director, PNG Power What are the top priorities for the sector with regard to power generation and infrastructure? CAROLYN BLACKLOCK: The main priority for the power sector is to meet demand, while undertaking a least-cost planning exercise. In the past we simply set up poles and wires and added generation to the grid, but nowadays this is not how it works. The reason for going down a least-cost planning path is to ensure that the price customers…

Analysis

Reform and renew: Greater energy independence through new strategies and a boost in renewables forms the backbone of government policy
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Reducing reliance on energy imports and addressing the shortage of power is major goal for Papua New Guinea. To this end, the National Executive Council approved a draft of the PNG Natural Gas Policy White Paper in April 2018, which seeks to better manage the growing oil and gas industry, while deriving more benefits on the domestic front. In line with these plans, renewable energy will also form part of the overarching plan to address local power shortages, with a number of hydropower and biomass…