There are preliminary negotiations into getting gas from the Liquefied Natural Gas project for electricity generation. However, Managing Director Peter Graham says just how soon that will be depends on when a concrete agreement is signed.
He estimates that a year after the signing is when PNG could see the generation of electricity gas from the LNG.
With the country facing power generation issues, the government has its’ sights set on Liquefied Natural Gas to counter the Energy needs of the people of the nation.
ExxonMobil Managing Director Peter Graham says they don’t specialize in power generation. However, with negotiations underway, there is still a good way to go until a concrete agreement is signed.
With the first shipment of LNG departed, the country is now holding its breath to see whether the dividends from the production will indeed translate to tangible development.
According to Mr. Graham, royalty payments will start to flow as soon as the gas starts to flow. However, not all genuine landowners have been identified as yet. The clan vetting process has not yet been completed.
As such, developer ExxonMobil will be parking funds in a trust account in the Bank of Papua New Guinea.
ExxonMobil is not revealing the exact amount that will be derived from the first proceeds of the LNG. However, from the profit obtained, landowners and the state earn equity shares of 19.6 percent.
The company is continuing exploration ventures to meet production targets.
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