- WEB MASTA
- Posted 19 March, 2019
Kumul Petroleum Holdings Limited managing director Wapu Sonk says the country needs to quickly take the opportunity to attract investments
BY MELISHA YAFOI
KUMUL Petroleum Holdings Limited managing director Wapu Sonk says the country needs to quickly take the opportunity to attract investments.
Mr Sonk, while speaking at the third petroleum and energy summit, said the signing of gas agreements by the state will place the country in the top 10 energy countries in the world.
He said big things are currently happening in the oil and gas sector especially with the country’s signing of the two new LNG projects, the Papua LNG project led by TOTAL and train three for P’nyang gas led by ExxonMobil.
“Together they are proposing to increase the production of LNG by 180 million tons per annum doubling current production over 60 million tons per annum, placing PNG in the top 10 producing countries in the world.
“This is not only big for the industry but for the country. Against this good news there are some challenges last year we experienced some shortage of LNG supply mainly with the shortage of the problems with the Final Investment Decision (FID) which was sanctioned in 2016 and 2017 coupled with the decline in production from traditional suppliers like Indonesia and Malaysia.
“This was great news for us in PNG and definitely stimulated the activity pushing the economy forward,” he said.
However, Mr Sonk said PNG is not alone by end of 2018 as several new projects are coming in with FID promising to bring millions of tons of LNG to the market.
“We are hearing of more and more LNG projects, many in the US who would like to start at the same time as our two projects.
“So we need to be cheap and we need to also go quickly before it is too late and we lose out on the opportunities.
“We also need to keep an eye out on the oil market because all the oil condensate and gas is linked to the global oil price in one form or another,” he said.
“After the shortage collapse in 2014 the market seemed to stabilise somewhat and many of the pricing experts predicted that this should remain just in the next few years.
“We need to remember this, stability is fragile and is an independent balance of the market, controlled by discussions and sanctions which together have managed the balance in production elsewhere,” he said.