- Port Moresby
- Posted 5th Oct, 2018
KPH boss sets date for opening of gas power plant
The gas powered 57.78 megawatts power plant constructed by NiuPower Ltd, a joint venture company owned by Oil Search Ltd and Kumul Petroleum Holdings will be commissioned in November.
KPH managing director Wapu Sonk, pictured, told The National that the power plant which was launched in December last year is 80 per cent complete but was being delayed due Apec.
“With Apec happening we did not want to disrupt the power systems in Port Moresby so we have delayed the commissioning until after,” Sonk said.
“That power plant located at the PNG LNG Project site will replace about 50 megawatts of diesel powered generators in the city.
“It will be pretty good, reliable and cheaper power into Port Moresby,” he said.
Deputy Prime Minister Charles Abel said it was an important project that signals the beginning of the conversion and utilization of PNG’s own gas.
“It’s an important project and a cleaner cheaper source of energy and a milestone project for the country,” Abel said.
The gas-fired power project worth K375 million was part of the Government’s 100-day plan and it would supply electricity to boost the current Port Moresby grid.
The project was constructed by NiuPower Ltd, a joint venture company owned by Oil Search Ltd and Kumul Petroleum Holdings Ltd as an independent power producer and to sell electricity to PNG Power Ltd (PPL) under a power-purchase agreement (PPA) between PPL and NiuPower.
It was identified as a critical and special key infrastructure project with significant impact in meeting the capital city’s power demand as well as the potential of reducing PPL’s retail tariffs throughout PNG.
PNG Power Limited will be constructing a double circuit 66kilovolt transmission line from the power plan to the site at a new Gerehu substation to transfer power generated by the gas power plant to the Port Moresby grid. The average power tariff or unit cost to PPL is K2.5 (US 8 cents) per kilowatt-hour subject to fuel process and escalation and this may be the cheapest compared to the existing PPL generating sources.