PNG Government Wants Downstream Processing of Papau LNG

Papua New Guinea (PNG) government wants Japanese firms to invest in downstream processing of Papua LNG project.

Country’s energy minister, Ben Micah, is traveling to Japan to discuss the issue with potential investors. Japan is the biggest importer of LNG from PNG, Papua New Guinea Today newspaper reported Monday. Exxon operated PNG LNG project is supplying the fuel to TEPCO and Osaka Gas.

Micah said he is going to tell Japanese buyers of LNG who have expressed interest in establishing downstream processing industries in Papua New Guinea using our domestic gas, “that there is enough gas in our country for both export and domestic processing, for requirements of power and also other value-added products such as methanol, fertilizers and other by-products that need to be downstream-processed in our country.”

While PNG LNG project exports the fuel as raw energy resource, the government wants downstream processing of the proposed Papua LNG in the country, Micah said.

The Papua LNG is being developed by Total, together with partners InterOil and Oil Search. Caution Bay near Port Moresby has been selected as the site for the LNG plant. The project is based on Elk-Antelope gas field. The already operational PNG LNG plant is adjacent to the selected site.

The Papua LNG project is nearing completion of a final investment decision, the newspaper reported.