PNG, Taiwan ink LNG deal

THE PNG liquefied natural gas (LNG) project has signed off its last 1.2 million tonnes per annum (mta) of LNG to China Petroleum Co PNG-Taiwan LNG deal, The National reports.

Esso Highlands Ltd, operator of the US$15 billion (K40 billion) LNG project, signed the 20-year sales deal with the Asia-Pacific LNG customer, last of the four LNG customers for the total 6.6mta to be produced when the project exports its first cargo in late 2014 or early 2015. 

Esso Highlands Ltd is a subsidiary of ExxonMobil Corp.

“This important agreement with CPC will deliver a reliable supply of cleaner-burning natural gas to meet Taiwan’s growing energy demand and begin a new and lasting relationship between Taiwan’s largest energy importer and PNG’s first LNG project,” Ron Billings, vice president, LNG, ExxonMobil gas and power marketing, said.

Second major partner Oil Search Ltd’s managing director Peter Botten said: “The PNG LNG project is now fully contracted for the entire plant capacity, and the way is clear to move forward to financial close.”

Mr Billings said: “It also marks a significant step forward for the PNG LNG project. With this SPA, all of the project’s production capacity has been committed on a long-term basis.

“We are now looking forward to the finalisation of the financing arrangements with lenders which is expected in the first quarter of 2010.”

CPC Corp is the largest energy importer in Taiwan.

The previous three SPAs signed last year (2009) were with Japan’s Osaka Gas Co Ltd, for 1.5mta of LNG on Dec 22; with Tokyo Electric Power Co Inc (Tepco) for 1.8mta of LNG on Dec 7; and on Dec 3 with Unipec Asia Co., Ltd., a subsidiary of China Petroleum & Chemical Corp (Sinopec) for 2.0mta of LNG.

(CPC) Taiwan.

Esso Highlands Ltd, operator of the US$15 billion (K40 billion) LNG project, signed the 20-year sales deal with the Asia-Pacific LNG customer, last of the four LNG customers for the total 6.6mta to be produced when the project exports its first cargo in late 2014 or early 2015. 

Esso Highlands Ltd is a subsidiary of ExxonMobil Corp.

“This important agreement with CPC will deliver a reliable supply of cleaner-burning natural gas to meet Taiwan’s growing energy demand and begin a new and lasting relationship between Taiwan’s largest energy importer and PNG’s first LNG project,” Ron Billings, vice president, LNG, ExxonMobil gas and power marketing, said.

Second major partner Oil Search Ltd’s managing director Peter Botten said: “The PNG LNG project is now fully contracted for the entire plant capacity, and the way is clear to move forward to financial close.”

Mr Billings said: “It also marks a significant step forward for the PNG LNG project. With this SPA, all of the project’s production capacity has been committed on a long-term basis.

“We are now looking forward to the finalisation of the financing arrangements with lenders which is expected in the first quarter of 2010.”

CPC Corp is the largest energy importer in Taiwan.

The previous three SPAs signed last year (2009) were with Japan’s Osaka Gas Co Ltd, for 1.5mta of LNG on Dec 22; with Tokyo Electric Power Co Inc (Tepco) for 1.8mta of LNG on Dec 7; and on Dec 3 with Unipec Asia Co., Ltd., a subsidiary of China Petroleum & Chemical Corp (Sinopec) for 2.0mta of LNG

 

LNG plan offers farmers new deal

 Caption: Mr Parindali (left) looking through the documents while Mr Ingram signs the others.  – Nationalpic by SHEILA LASIBORI    

 By SHEILA LASIBORI    

THE new roads and airstrips being constructed for the PNG liquefied natural gas (LNG) project will give market access to primary agriculture produce.

But a lot of the hard work will be done by local Papua New Guineans, according to Mark Ingram, chief executive of Business for Millennium Development (B4MD).

Tonight in Port Moresby, B4MD signed a deal with Hides Gas Development Corp (HGDC), a landowner company.

“What the LNG project provides is a way to finally get market access … so with market accesses, you can now create an economy for the people.

“The benefit of profits will go directly to the farmers.”

HGDC chairman Libe Parindali and Mr Ingram signed the deal targeting women and children in resource-rich Southern Highlands.

It paves way for the creation of Southern Highlands Produce Ltd, a joint venture between B4MD and landowners.

Mr Ingram also said: “Southern Highlands Produce brings together a group of Australian international companies working in partnership with the communities of Southern Highlands to create a community based fresh produce company”.

Oil Search managing director Peter Botten acknowledged B4MD for its efforts and others who wanted to help and contribute to dealing with millennium development goals (MDGs).

Oil Search is a member of B4MD and it will help seek seed capital for SHP-based produces.

Under the arrangement B4MD would provide necessary expertise, tools and support for SHP from various members to assist with the running of the company.

 

 

Familiar situation

From PAUL OATES

This report sounds terribly familiar for some reason.

http://www.probeinternational.org/foreign-aid/chinese-investment-good-africans-depends-who-you-ask

Papua New Guinea does not need extra ministers: Morauta

Prime Minister Sir Michael Somare’s proposed constitutional amendments to increase the number of ministers from current 28 to 33 is a naked and badly camouflaged strategy to capture numbers to protect his scandal-plagued government remain in power, the Opposition lashed out today.
And, Leader of Opposition Sir Mekere Morauta urged concerned citizens to challenge Sir Michael to explain how the nation will benefit from extra ministries, which will cost the nation’s taxpayers millions of kina.
Sir Mekere explained that five additional ministers will cost PNG taxpayers a minimum of 3 million kina more in salaries, allowances and staff costs. This excludes office rent and office support costs, and the support that departments and agencies inevitably end up providing to ministers.
“Somare is looking for numbers not Ministers. He knows that when the constitutional reference on the Organic Law on the Integrity of Political Parties and Candidates is handed down, his chance of survival will be reduced. This is a move by a desperate person to cling onto power through an ill-conceived constitutional change,” Sir Mekere said.
Sir Mekere said that the timing of this announcement was revealing, because it confirms the point that this is a move purely to anchor Sir Michael in power.
“The people of Papua New Guinea do not need more ministers. People need more and better quality schools, health centres, affordable and reliable transport, and improved telecommunication services. That is what Somare should be providing, not burdening the public with the cost of more ministers.
“Is the Prime Minister blind? Is he so insensitive and intoxicated with power that he cannot see what the nation and the people need,” the former prime minister asked.
“PNG does not more ministers. PNG does not need a K130 million executive Falcon jet for exclusive use by the Prime Minister. We need that K130 million to repair classrooms, teachers’ houses, health centres and staff housing, trains new teachers and health officers, repair and buy new life-saving medical equipment as well as repairing fast deteriorating inter and intra provincial roads.
“The Falcon jet is already being used as a mini bus. How many millions will the government spend to operate and maintain the mini bus. Can he tell the people of PNG? I am told that the figure is around K35 million a year, for maintenance and operational costs. Please tell us.”
Sir Mekere said: “Papua New Guinea needs a change. A change of Government to put in place a new, capable and disciplined Government to tackle head-on existing and growing problems and challenges faced today and in the future”.
“The objective of the move to increase ministries is simple – to get a number to support him to stay in power. That being so, why doesn’t he amend the constitution to increase the number of ministries to 55, so that he is quarantined for life in power?”
“That will stop him trying to poach members from other parties, including my party and others in the Opposition,’ Sir Mekere said.

Carbon trade is 'cargo cult' says Forest Minister

BY KEITH JACKSON

PERHAPS stung by allegations that it had gone soft on self-proclaimed ‘carbon traders’, the Post-Courier today publicised comments by Forest Minister Belden Namah that “carbon trade is a cargo cult”.

Mr Namah reiterated that at present there is no legal framework for carbon trading in PNG, and there is no guarantee that carbon trade could bring in the tangible development and services.

In a statement that will shock conservationists, however, he said logging will benefit the local people more than carbon trading.

The people of Pangia should be proud their timbers will be used throughout PNG, he said.

However, some landowners expressed disappointment that procedures had not been followed by the National Forest Service and urged their leaders not to sign away their timber rights.

Governor Anderson Agiru supported the project but urged the Forest Service to ensure that landowners to one day become developers in their own area.

 

MS Columbus arrives in Madang

MS Columbus docking in Madang on yesterday with 143 mainly German passengers

Of these, 41 took a flight to Madang on chartered Dash 8 aircraft, remainder undertook sightseeing tours around Madang.

 The expedition ship is owned and operated by Hapag Lloyd which operates to smaller ports than the larger ships in the Hapag Lloyd fleet and on this occassion it arrived in PNG from the Solomon Islands and has already visited Rabaul. Wesley

Hatan, a senior member of Melanesian Tourist Services staff travelled aboard the vessel to assist in the coordination of sightseeing at the various ports in PNG.

The Columbus visited Port Moresby in 2009 and is exprected to return in 2011.

According to Wesley Hatan, the excusions have operated well, passengers have been satisfied with their visit to PNG with minor delays in Rabaul due to road conditions and this morning, fod in Goroka which delayed the aircraft arrival.

The ship departs for Wewak on Monday then onto Manila to continue their world cruise.

Politicians funded escape

Kapris names 3 politicians in shocking tell-all

 IN a shocking tell-all, suspected bank robbery William Kapris has reportedly told police that three politicians funded his escape from the Bomana prison as well as his criminal activities.

Kapris, who described himself as a “marked man” during the questioning, is said to have named the three politicians along with some prominent leaders and businessmen.

Sources told The National that apart from financing his escape from Bomana prison on Jan 12 with “a few hundred thousand kina”, these people had also allegedly funded Kapris’ criminal activities, including three high-profile robberies involving millions of kina.

Kapris told police he knew he was a marked man because of the “damaging” information he held.

“He said the ‘leaders’ were deeply involved,” a source told The National.

Kapris also alleged that a “black bank” located in Port Moresby’s Gordon suburb was also involved.

He claimed the “black bank” was operated by a Chinese man who had links to Singapore.

During the interrogation, Kapris gave specific details on how he and his accomplices robbed the Metals Refining Operations (MRO) of 13 gold bullion bars (each worth about K2.5 million), the Kerema BSP of about K800,000 and the Madang BSP of about K2.4 million.

The three politicians were allegedly paid about K350, 000 each for the Madang BSP robbery and another K40, 000 for the Kerema job.

Kapris himself got about K60, 000 to organise and fund the Madang robbery.

He said all were “inside jobs” and that there were no hold-ups, no kidnaps, and no guns involved in any of the three cases.

He said the “insiders” opened the safes and handed the loot to his gang.

The gold bars were allegedly disposed of by the operator of the “black bank”.

Kapris said the loot was hidden away for safekeeping and later distributed among themselves and their “financiers”, including the politicians and insiders.

He claimed he was planning to travel with the man to Singapore on Dec 2, 2008, when he was arrested.

Kapris is expected to appear in court today for a second mention in relation to his prison escape on Jan 12 from Bomana maximum security jail.

The sources were not able to tell The National whether details of the interrogation had been submitted to Police Commissioner Gari Baki.