Executive Summary
Despite the impacts of Covid-19 during 2020, Kumul Petroleum continued its role as State nominee in petroleum projects in the country.
The LNG plant at the PNG LNG Project facilities at Caution Bay outside Port Moresby once again operated above its rated capacity of 6.9 mtpa, producing 8.8 million tonnes of LNG for export. With 114 shipments taking place during the year, the main income source for the organisation was assured.
However, international petroleum and LNG prices dropped due to the worldwide Covid-19 pandemic and they only partly recovered by the end of the year. Kumul Petroleum revenue consequently dropped compared to the previous year, reducing from US$697 million to US$484 million, which affected dividend and other payments to the State.
In the energy sector, Kumul Petroleum maintained its shareholding in NiuPower Limited along with its 50/50 partner, Oil Search Limited. The NiuPower gas-fired power station continued to dispatch power into the Port Moresby power grid throughout the year, generating electricity worth a total of K47.6 million.
In line with its stated strategic goals, Kumul Petroleum continued its philanthropic support of health initiatives, supporting the national Department of Health and finalising long- term funding agreements with the two main hospitals in Lae and Port Moresby to assist treatment of cancer and heart disease.
Also in support of Government initiatives, Kumul Petroleum continued its construction of electricity transmission lines in the Hela and Southern Highlands provinces. This infrastructure will provide necessary and important linkages between the high voltage line extensions of the Ramu grid constructed by PNG Power and the rural communities who need access to electricity. Combined with initiatives of other agencies, such connections will go a long way towards achieving the NEROP target of enabling electricity to reach 70% of the population by 2030.
Kumul Petroleum also supports national development in other ways including operation of the Kumul Academy providing specialist industry training, donations to health facilities and funding for a range of sporting codes including rugby league, soccer, golf and cricket.