National Petroleum Company PNG and PNG Power Limited have ventured into developing gas for power generation.
National Petroleum Company PNG will negotiate with PNG LNG developer Exxon Mobil to purchase gas to supply to PNG Power.
Both State Owned Entities (SOE) officially signed a Memorandum of Understanding this morning.
For too long, PNG Power has been using thermal energy or diesel and hydro to power the only two power generating systems in the country, which are Port Moresby Power System and the Ramu System.
However, with the working arrangement binded in the MOU, both SOE’s can work together to realise the possibility of using gas as an alternative fuel to generate power.
With National Petroleum Company PNG taking charge of the conditioning and striping of the gas, and eventually supplying it to PNG Power, PPL has optimised the opportunity by collaborating all expertise in the new business arrangement that would be overseen by Independent Public Business Corporation or IPBC.
The MOU strives to develop affordable electricity supply solutions, and one avenue is to deliver the NPCP operated POM Gas Supply Project that is progressing well.
Once completed, National Petroleum Company PNG will buy gas from PNG LNG Project, condition it near the LNG Plant site and supply it to PNG Power for power generation.
Negotiations with Exxon Mobil will follow suit and its anticipated the new arrangement will in the long run address the ever increasing demand for energy supply in the country.
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