- Port Moresby
- Posted 12th Dec, 2017
POM Power Project welcomes landowner participation
Kumul Petroleum Holdings Limited (KPHL) Managing Director, Mr Wapu Sonk, says the new Port Moresby Power Project welcomes participation by resource landowners.
He says this can be achieved through equity participation by the Mineral Resources Development Company (MRDC) in NiuPower Limited, the Independent Power Producer (IPP) that has been created by KPHL and Oil Search Limited to underwrite the US$120 million gas-fired power station.
Mr Sonk, who is also chairman of NiuPower, was responding to concerns by Hela resource landowners that they had been denied the opportunity to participate in the new power station, which will use gas from the PNG LNG liquefaction plant near Port Moresby.
“NiuPower has always been keen to bring in additional equity partners. Of course, any equity participation must be on commercial terms consistent with the terms agreed between NiuPower and PPL. Otherwise, there will be substantial increases in the cost of power to PPL and its customers.
He said Kumul Petroleum and Oil Search had previously invited the State-owned Mineral Resources Development Company (MRDC) to take equity in NiuPower’s investments to ensure landowner participation in the development of the Port Moresby Power Station.
“This offer remains open and NiuPower is awaiting engagement from MRDC to discuss the commercial terms for equity participation. We therefore urge landowners to work constructively with MRDC to achieve their participation in this milestone power project.”
Mr Sonk added that following the establishment of the Port Moresby Power Station, generation requirements for the National Capital District will be covered for a number of years.
“With the creation of NiuPower and the development of the gas-fired Port Moresby Power Station, Kumul Petroleum and Oil Search directly contribute to the Government’s energy objectives of electrifying 70 per cent of PNG by 2030 – today estimated at around 10 per cent.
“We recognise that electrifying PNG is a development game-changer that will improve the lives of our people in line with Vision 2050,” Mr Sonk said.
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