By Bridgette Komatep – EM TV, Port Moresby
Opposition Leader Don Polye has questioned the recent Memorandum of Agreement (MoA) signed between the state and ExxonMobil for the supply of gas for power generation.
Mr Polye described the deal as one of the government’s knee-jack reactions in addressing the chronic power problems in Port Moresby and Lae.
He also queried the commercial arrangements involved in the gas power generation deal. The well-versed Opposition Leader was convinced that the recent gas deal for power supply was a knee-jack reaction and wanted the Prime Minister to explain.
Mr Polye also queried on what formula would be used to sell the gas as it was a commercial arrangement. He also wanted to know if the government was charging for the operator for the use of excess gas or gas flare.
Prime Minister Peter O&rsquO’Neill defended the MoA, stating it was not a knee-jack reaction but the first time the government has secured energy supply for the domestic market to provide cheaper energy. He also reiterated the importance of domestic gas supply ahead of international events, beginning with the 2015 Pacific Games.
Under the deal, it’s said to increase power generation and reduce the cost of power supply.
The agreement specifies that the PNG LNG Project will deliver up to 25 megawatts of power to Port Moresby in a bid to address the constant power problems in the city.