Kumul, KBR to Work on PNG Energy Hub

Papua New Guinea-based Kumul Petroleum Holding has executed an agreement with oil and gas engineering firm KBR to provide conceptual development and feasibility analysis services for an energy hub in the Kikori region of the Gulf Province of Papua New Guinea, Kumul said August 25.

The energy hub, to be known as the Kikori Energy Hub, is an extension of the Western Pipeline Project scope currently being undertaken by Kumul Petroleum.

The scope of the conceptual feasibility study includes potential for a mid-scale LNG liquefaction and regional export facility to encourage future PNG electrification via gas driven generation in remote areas, a 180MW power generation facility of which up to 100MW has been allocated for Western and Southern Highland electrification via future grid connection, a methanol process facility to enable local petrochemical bi-product production, and a condensate stabilisation, storage and regional export facility.

The feasibility study will also include location and technology screening studies for the LNG liquefaction facility that will identify the most economically feasible concept, inclusive of a floating LNG facility, a gravity based structured LNG facility or an onshore based LNG facility, Kumul said. The study is scheduled for completion later this year.

“Now that we have completed the pre-FEED of the Western Pipeline Project, we are focusing on the downstream commercialisation options available to produce an economically sound project, and how best we can create in country value (ICV) to the people of Papua New Guinea whilst maximising our return on investment,” Kumul Petroleum’s managing director Wapu Sonk, commented.

Shardul Sharma