Abal denies saying 'LNG was rushed'

DEPUTY Prime Minister Sam Abal yesterday said the PNG gas agreement is a well-considered document that will stand the test of time, The National reports.

He refuted claims and inferences that the whole gas agreement and processes had been rushed.

Abal said he had used the Tok Pisin word “hariap” to describe the process of negotiation and signing of the gas agreement in May 2008 in order to secure the 2014 market window, “and this was wrongly reported as a statement that the project has been rushed”. “This is unfortunate.

“I was certainly not trying to suggest that the government has rushed finalisation of the gas agreement, but wanted to convey that we needed to get on with the task of concluding the agreement in a specific time frame,” the deputy prime minister said.

“As a senior member of cabinet, I was aware that the negotiations took a year to conclude and I am confident that it will stand the test of time.”

He said the chronology of events leading up to the financial close and beginning of full execution of the PNG LNG project clearly showed no “rush” in the project.

The gas agreement was negotiated from 2007-08. Gas agreement signing took place in May 2008. Licence-based benefits sharing agreement (LBBSA) was negotiated from 2008-09. BSA was signed in May 2009 and UBSA thereafter in December 2009.

The final investment decision was reached on Dec 8, 2009. Financial close and beginning of full execution took place in March last year.

“The gas agreement is a well-considered document.

“It was essentially negotiated by a team of senior bureaucrats with key economic ministers and the ministerial economic committee endorsed all significant progressive documents with concurrency of the full cabinet,” Abal said.

He said cabinet was always aware that there would be significant benefits to all PNG stakeholders if sales from the LNG project could target a perceived global supply shortfall in the 2013-14 period and “this is what we achieved”.

“Those who follow international trends, particularly since the global financial crisis, would be aware that experts are now forecasting the possibility of a glut in LNG supplies from around 2017.

“Many Australian projects are now in a race to try and beat the deadline.

“In PNG’s case, we have concluded sales for our production at exceptionally good terms starting from 2014 because we remained schedule-driven despite the many challenges we face.”

The deputy prime minister said it was unfortunate that because of news stories suggesting the agreement had been rushed, others were now claiming the gas resources had been “sold cheaply”.

“That is erroneous reasoning without the basis of depth and objectivity,” Abal said.

He said government statements had clarified that this was not the case and international commentators and analysts had embraced the PNG agreement as a model for other countries to follow.

 

 

Yasi's strength felt in Alotau

By JASON GIMA WURI

 

TREES were uprooted and a temporary blackout was reported in Alotau and parts of Milne Bay yesterday morning as Cyclone Yasi passed through the Coral Sea producing strong gust winds of between 30 and 45 knots, The National reports.

Milne Bay provincial disaster coordinator Eric Balaria confirmed the reports.

The cyclone was heading towards the Australian state of Queensland and made landfall at 10pm PNG time.

“The strong surge of wind between 10am and noon caused minimal destruction.

“We also received reports that some houses had their ridge caps blown away, banana and betelnut trees were uprooted and a temporary blackout, allegedly caused by tree branches falling across power lines,” Balaria, who was at East Cape, 50km out of Alotau town, monitoring the situation, said.

Confirmed reports said straight after the strong winds subsided, rain and thunderstorms took over.

No major incidents had been reported.

Officials were hopeful to get updates from the outer islands by today.

Meanwhile, the National Weather Service in Port Moresby confirmed that Cyclone Yasi had moved onto North Queensland.

Senior broadcaster Kwekweina Maiwori said by yesterday afternoon, the cyclone was 345km east of Cairns.

“PNG’s area of responsibility has been cancelled as the cyclone is moving west southwesterly and will directly hit the coast of North Queensland at a category 5 level and travelling at a speed of 280km per hour. 

“In Milne Bay, gale winds warning of 34-45 knots, which were felt earlier yesterday, have been cancelled.

“Winds of 25 knots will still be in the Milne Bay area for another 24 hours,” Maiwori said.

“Because of the unpredictability of the wind and the rains, we should continue to stay clear of the waters and take extra care until NWS clears the weather warnings in the next few days.”

 

 

Five die in Southern Highlands gunfight

By ELIAS LARI

 

FIVE people are dead, a man is under medical treatment and properties worth thousands of kina were destroyed in a fierce gun battle between two tribes in the Nipa-Kutubu electorate in Southern Highlands, The National reports.

The fight, between the Hulsoan and Tegipo 1 and 2 tribes, started over a prolonged delay in compensation payment over the death of businessman Hulson Song from the Tegipo tribes believed to have been killed by someone from the Hulson tribe through sorcery in 2009.

However, in the delay, the Hulson tribe shot dead two other young men from the Tegipo tribes during New Year’s Eve last year.

The Tegipo tribes then retaliated and shot dead two Hulson men and wounded another young man who is nursing pellet wounds on his legs.

Tegipo councillor Jack Elal said this was one of the most fearsome fights they had been involved in.

He said the fight had destroyed the lives of many people and properties worth thousands of kina.

Elal said a bishop’s house and a primary school at Injua were also burnt down and the fight was getting out of control.

He said his tribe was willing to make peace because they did not want the fight to continue.

Elal said if leaders like local MP Philemon Embel and administrator William Powi who is from the same area, together with the police and peace mediators went to the scene and initiate peace talks then people would surrender.

He said Embel had not made any effort to iuntervene in the situation.

Elal said Embel was focusing on sports and forgot to help his people.

He said the situation could turn worse because high-powered weapons were being used.

Elal added that people wanted the tribal fights to end and urged Embel and Powi to intervene to restore peace between the two tribes.

The National called SHP police commander Teddy Tei yesterday but he said he was in a meeting and could not comment.

Also attempts to contact the Mendi General Hospital were not successful.

 

 

Chamber slams fights

THE Port Moresby Chamber of Commerce and Industry (PMCCI) has described the recent spate of ethnic clashes in the nation’s capital as barbaric and primitive behaviour by uncivilised people, The National reports.

In a statement yesterday, the chamber said the causes were often petty, and could be solved quickly and efficiently by a police force which should be equipped and committed to stamping out such behaviour.

“Gordon Market should be one of the premier markets in the city, but it is in an anarchic state; a battleground for various groups from the highlands vying for economic supremacy in an area which is literally a stone’s throw away from the police station. How can the Lae City Market operate so efficiently when NCD’s cannot?

“The various groups from the resource areas hanging around town are a large part of the problem.

“Let’s be honest – do we really believe the money they are seeking is for ‘business grants’ or ‘seed capital’? It is pocket-money that is being spent in bars and brothels, and is fueling the increase in public drinking and offensive behaviour.”

The chamber added that such behaviour at  markets were out of control and just tinder boxes waiting for some drunkard to bump someone or step on someone’s produce and we have World War III triggered by opportunistic and armed young men.

PMCCI said if police were under-resourced then City Hall should step in by engaging heavy security provided by qualified security companies who were instructed to exercise a zero tolerance policy on those causing trouble and allow the law-abiding public to get on with their lives peacefully.

“We despair of our police getting a handle on such clashes – we have yet to see one person charged – yet  crimes committed, such as beheading and mutilation, are beyond belief in the capital city,” the statement said.

PMCCI called on police and Governor Powes Parkop to lead a crackdown into public drunkenness, threatening, abusive language and carrying of weapons such as bush knives in the city’s confines saying, “We have had enough, and the streets and our markets belong to decent people.”

 

set baseline and data on what was on the ground.

Industrial park planned for Gulf

By ANCILLA WRAKUALE

 

GULF will see the development of an industrial park project that will cater for all the resource project activities in the province like the PNG LNG Project in partnership with Inter-Oil and Energy World International, The National reports.

Gulf Governor Havila Kavo revealed this at a media conference yesterday.

Kavo said extensive studies such as social mapping and environmental studies are underway in projected impacted areas to establish snapshots on the likely impacts and other issues to allow for equal participation from the people.

“We hope the industrial park would help Gulf citizens and PNG at large,” said Kavo.

He said PNG is blessed with vast resources and these resources should be used to industrialise PNG.

Gulf has established a business arm called Gulf Oil and Gas Company (GOGC) which is solely responsible for resource development projects in the province.

GOGC chief executive Mark Baia said they were doing checks and balances to ensure that everyone was included in the projects and that relevant studies and awareness were conducted before the implementation.

Baia highlighted that once everything came into place, they were also looking at developing key such as airport and deep water port facilities and housing infrastructure.

He said they were looking at improving cash economy such as local coffee processing and coconut production for the people.

Also yesterday, two consultants who would be engaged in carrying out marine and ecological studies in the impacted areas around Ihu, Baimuru and Kikori were commissioned.

Prominent marine biologist Pochon Lili said he was honoured to be included in the project and that it was vital the studies should be conducted to set baseline and data on what was on the ground.

LNG project No.2 signed

First gas shipment scheduled for 2013

By BOSORINA ROBBY

THE second LNG project in PNG, led by InterOil Ltd, has set a tentative date for its first gas shipment at the end of 2013, one year ahead of the ExxonMobil-led PNG LNG project, The National reports.

Gulf Governor Havila Kavo (left) and InterOil chairman and SPI 208 director Phil Mulacek signing the project funding, construction and shareholders agreement on behalf of the people of Gulf and the three InterOil partners yesterday. At right from Mulacek are Treasurer Peter O’Neill, Prime Minister Sir Michael Somare and Petroleum and Energy Minister William Duma. – Nationalpic by EKAR KEAPU

This was revealed by partner Liquid Niugini Gas Ltd (LNGL) chief executive officer Henry Aldorf yesterday at the signing of the project funding and construction agreement and a shareholders agreement between LNGL, South Pacific InterOil (SPI 208), Energy World Corporation (EWC) and Gulf Governor Havila Kavo.
The signing was witnessed by Prime Minister Sir Michael Somare, Petroleum and Energy Minister William Duma, Finance and Treasury Minister Peter O’Neill and Internal Security Minister Mark Maipakai.
Yesterday’s event essentially marked the launch of construction of the US$4 billion three million tonne per annum (mtpa) land-based LNG plant in Gulf. It would be developed in two phrases – 2mtpa and 1mtpa expansion.
These agreements followed an announcement last September of a partnership between Pacific LNG Operations Ltd and EWC.
Aldorf explained that the LNG plant would be built economically, compared with other new LNG projects and would provide the Asian market with clean energy.
He said this was due to a new financial modular that was developed with other partners to ensure the second LNG would deliver in record time.
He thanked the partners involved in the project and the landowners and provincial and national governments for their assistance in making the project come to reality.
InterOil chairman and SPI 208 director Phil Mulacek explained that the timeline for the project was set to start selling the LNG from the Elk Antelope fields, beginning at a cost of US$450 million per million tonne.
EWC CEO Stewart Elliott said the project could be seen as having two parts – hardware and software.
“The hardware refers to the equipment, pipelines, the plant and the LNG shipment and finding new markets in Asia.
“We are looking to develop a receiving terminal in the Asian market to cater for the 20 million tonnes of gas we produce,” he said.
The software part involved the people of Gulf who had been in close contact with the company from the beginning, because they wanted the project to improve their lives.
Elliott said no one has opposed the project because they see the benefits they will get including business opportunities, education and other infrastructure facilities.
“You have our assurance that we will do our utmost to care for the people,” he said.
The partnership was that SPI 208 would be in charge of the Elk Antelope fields while LNGL would construct the pipelines and would also work with EWC to build the LNG plant off the coast of Gulf.
The plant would process an estimated 2.25 trillion cubic feet (Tcf) of natural gas over 15 years.
In return for its commitment to fully fund the plant, the agreements provided that EWC was entitled to a fee of 14.5% of the proceeds from the sale of LNG, less agreed deductions and subject to adjustments based on timing and execution.
The agreements provided a framework for the possible expansion of the plant’s capacity to 8mtpa of LNG.
In monetary terms, Mulacek explained that since it would cost US$450 million per million tonne, this would be US$450 million multiplied by the 8mtpa the LNG is capable of producing, which should be around US$4,000 million (US$4 billion)

The strength of women farmers in Papua New Guinea

By BARBARA TOMI of NARI
A recently-completed survey conducted under the project ‘Improving Business Acumen for PNG Women Smallholders In Horticulture’ has unearthed some very enterprising women who have quietly been producing and marketing some of the country’s best local fruit, vegetables and niche products.

Marey Yogiyo displays a sample of her Bauka packaged coffee.-Pictures by CATHY MCGOWAN

Many of them have been growing and processing these foods under the radar with little support other than that of their family members in order to meet their immediate needs.
Some of these enterprising women found in the Central province are growing the juiciest water melons in that part of the region; in Morobe they are raising sheep for wool and keeping bees for honey; and in the highlands these women are flooding the markets with temperate cut flowers and growing, training and supplying African yam seeds and packaging home-grown organic coffee for export.

Maria Linibi and Cathy McGowan visits bilum sellers of Goroka town and urge them to join the PNGWiADF network

These women came together from their respective regions to participate in a survey conducted by Cathy McGowan and Val Lang from the Australian Women in Agriculture to map out the membership of women’s peak agriculture body in the country, the Papua New Guinea Women in Agricultural Development Foundation (PNGWiADF), to determine the organisation’s current institutional arrangements and the women’s expectations of the organisation, identify governance issues affecting PNGWiADF and the support they need from the organisation.

Members of registered groups represented in the Eastern Highlands Women in Agriculture with members of the survey team

McGowan and Lang were assisted by project partners, Fresh Produce Development Agency (FPDA) and National Agricultural Research Institute (NARI).
PNGWiADF President Maria Linibi facilitated the survey of various groups.
A report of this activity will be put together by McGowan to present to the project leader, Prof Barbara Chambers from the University of Canberra to submit to the Australian Centre for International Agricultural Research (ACIAR), who funded the project.

Specialist African yam grower Jennifa Kena displays some of the yams she presented as gifts to new members of EHWiA

Over 20 registered groups, 10 individual members and hordes of interested women and men attended and participated in the survey, expressing their personal experiences and recommending ways PNGWiADF can best serve their interest to promote locally-grown foods and vegetables, flowers and tree crops.
Most of the women farmers said good communication systems, training, access to markets and credit facilities were a major hindrance to their success.

Meeting members in the Central province

For instance, Julie Anton travelled from Mt Wilhelm to Goroka to participate, hoping that PNGWiADF would network her to a market for her highlands orchids.
Another woman from Garaina in the south of Morobe province walked for nearly a week to reach members of her group from Bulolo district, then travelled together to Lae to participate in the survey; she was determined to actively participate and express her group’s need to be trained to grow quality vegetables to be able to tap into a ready growing market in their area, the mining townships of Bulolo and Wau.
Budding entrepreneur Marey Yogiyo attended the gathering in Goroka as an interested coffee farmer but with the burning desire to encourage other coffee farmers to drink their own coffee.
Yogiyo and her family grow organic coffee in the Aiyura Valley of Eastern Highlands and process and package it for sale in retail shops.
Since it is a new brand, the Bauka Blue Kofi is up against the established brands such as the Kongo Coffee, Goroka Coffee Roasters and Sigri Coffee.
So far she has secured Bintangor Trading in Goroka to sell her product.
These women are a few finds from the survey and there are more to be discovered.
The survey team was pleased with the information collected so far which will go a long way in identifying strategies to address women’s issues and to make them equal partners in agricultural development.
As part of the report, the survey team will recommend to the project initiators a capacity training that will address an area that has been raised by various groups.
The onus will be on PNGWiADF to use the information to be responsive to the needs of women and continue to raise their issues to the various pillars of government as the national mouthpiece of women food producers.
A full report of the survey will be available in May.