SOUTHERN Highlands Governor William Powi questioned the benefits of the infrastructure of the Papua LNG project, a pipeline to transfer gas into Kutubu and the aging facilities of the Kutubu, Gobe and Kikori oil fields.
His questions were directed at Minister for Petroleum Kerenga Kua.
Powi said: “We were previously led to believe that the P’nyang project was part of the LNG project, as it is now P’nyang is a separate project.”
Before Powi could continue, Abau MP Sir Puka Temu interjected with a point of order, saying: “P’nyang was never part of the PNG LNG project, the governor has got it wrong.”
However, his point of order was overruled by Deputy Speaker Koni Iguan who allowed Powi to continue his questioning.
Powi said: “If the P’nyang and the PNG LNG project are separate, are you going to build under that new project a pipeline to utilise the gas into the Kutubu PNG LNG facilities and the pipeline into Gulf and Central provinces?
“What is there for us, the landowners, under the PNG LNG. Under this new project, using the facilities, do we have any benefits in terms of toll for the use of the facilities?
“And finally, for Kutubu, Gobe and Kikori which are oil fields facilities that are aging, can the State talk to the developers, district and provincial and landowners to own these aging facilities and participate in business?” Kua said: “Initially there were talks of whether or not PNGLNG and P’nyang could be a joint project.
“However, it was decided that it would be kept two separate and distinct projects.
“PNG LNG and P’nyang are now separate projects.
“For the purposes of reducing the operating costs and maximising profitability, it was decided it would be necessary for P’nyang project to use some of the pre-existing infrastructure of PNG LNG, but whenever that happens, there are arrangements in place so that the joint venture partners of P’nyang will pay the joint venture partners of PNG LNG for the use of the common facilities.
“I assure the usage of the facilities will not be for free, there will be a fee imposed between the two separate projects.
“I am not aware of any provision in the PNG LNG agreement for aged infrastructure ownership to be transferred to the landowners, province and the state.
“I am not aware of any provision and it would be unlikely to have a provision in place.
“It was for that reason, my department initiated with the support of NEC of the Papua LNG agreement to have among a provision that will say when the capital outlays for the pipeline is paid down, the ownership will be transferred or sold to the provincial, landowners and state.
“The three can collect revenue, Total has agreed to that in principle.
“I doubt that there is provision in the PNG LNG agreement. If there is a provision, I will report to Parliament.”
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