By Vasinatta Yama – EM TV, Port Moresby
The recent sharp fall in oil prices is delaying the start of construction of a new Gas project in Western Province.
Mining and Petroleum Minister, Nickson Duban, says this has resulted in the operator, Talisman Niugini Limited, and the Government to looking at alternative ways to review the development options.
The Stanley Gas Project is a new standalone domestic gas project targeting locals, especially buyers living around Western Province, to deliver local gas.
The concept of this project is to extract gas, recover the condensate from the gas flow, and preserve the dry gas by re-injecting it into the ground for later use.
However, the project has not started yet, as it was greatly affected by the drastic fall in oil price from US$100 to US$50 dollars per barrel.
The project site is 40 kilometres north of Kiunga in Western Province. It will be developed by a joint venture of four developing corporations, including Talisman Energy as the operator.
Some dry gas will be on sale to other domestic mining companies to be used as fuel for regional power generation.
The concern now is that this project needs to start as soon possible, as it is expected to receive a total of US$204 million from its first sales.
While the fall in oil price remains, Talisman Energy General Manager, Grant Christie, says they will take this opportunity to meet with landowner groups to assist in the development of the project.