The Dirio Gas and Power Limited, a subsidiary of the Mineral Resource Development Company is set to be launched this afternoon.
“It is a historic moment for landowners, and a momentous occasion for the country,” Mr Mano said.
“The commissioning of the project will signal the entry into the power generation business, for the first time, by a 100% nationally owned company.
“Dirio is owned by PNG LNG Project landowners in Hela, Southern Highlands, Gulf, Western, and Central province. Their provincial governments are also partners in this project,” Mr Mano said.
“I’m very proud of their decision to undertake this venture. The petroleum & energy sector in our country has a huge potential, in the upstream through to downstream value chain.
“For a long time, business along this value chain has been dominated by foreign businesses. That has to change, and that change begins now. Dirio Power is a game changer.
“The MRDC Group and its trustee subsidiaries have the capacity to undertake this business. We have secured financing, and retained the best expert advice, to ensure this power project succeeds,” Mr Mano said.
He said the project was initially scheduled to be launched in July this year, but was delayed due to the outbreak of the coronavirus pandemic.
“The switch yard was ordered from Italy, where it is manufactured. We had planned to have it installed for a launch in July this year. Unfortunately, the lockdown in Europe and other parts of the world early this year following the COVID-19 outbreak delayed the transport of this critical equipment from Italy to PNG.
“All the vital and necessary parts are in place now for us to go ahead with the launch. I’m happy to announce on behalf of the MRDC Board that the Prime Minister Hon. James Marape, who is shareholder/Trustee of MRDC, has accepted the invitation to officiate at the commissioning ceremony.”
The Dirio project proposes to supply Port Moresby with 45MW of power using natural gas purchased from the PNG LNG Project. The plant will operate three 15 MW Titan Solar turbines, producing a total energy capacity of 45 MW.
The company signed a Power Purchase Agreement (PPA) with PNG Power in September 2019, agreeing to supply electricity at a price lower than other third party suppliers. Dirio aims to deliver cheaper power, making electricity more affordable. The low price could potentially lead to a reduction in tariff for electricity users in the capital city.
“The economic benefit to everyone, businesses and households, from the availability of cheap and reliable power is immense. I hope we can deliver power to other parts of PNG after its success in Port Moresby,” Mr Mano said.
The project cost around K250 million, which includes the cost of the turbines, construction of transmission lines and the switch yard.
