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Three major natural gas projects in offing
PORT MORESBY, Papua New Guinea (PNG Post-Courier, Dec. 14, 2009) - PAPUA New Guinea is set to become the second largest Liquefied Natural Gas producer in the Asia - Pacific region after Australia with three liquefied natural gas projects in the pipeline, According to Bloomberg, Papua New Guinea may produce up to 15 million metric tonnes of the fuel almost enough to supply Taiwan and India based on 2008 demand.
ExxonMobil recently announced a final investment decision for its Papua New Guinea Liquefied Natural Gas (PNG LNG) project while the National Executive Council also gave its thumbs up for another LNG project being spearheaded by Canadian InterOil Corporation.
Another Canadian energy company Talisman Energy is eyeing another LNG project in the Papuan Basin. Tony Regan, a consultant at Tri-Zen International Ltd. in Singapore told Bloomberg that Australia and Papua New Guinea are building a slew of LNG plants to tap into the demand in the Asia-Pacific.
The projects aim to produce more cleaner-burning fuel to reduce carbon emissions.
Imports by China and India rose in 2009 by 53 percent and 23 percent, respectively, said a report by Sanford C. Bernstein & Co.
"Papua New Guinea has always been regarded as highly gas prospective but the challenges to developing the resources have been seen as daunting," Mr. Regan, a former employee with Royal Dutch Shell Plc, said.
"It has the potential to become the second-largest LNG producer in Asia-Pacific." Malaysia is the biggest LNG producer in Asia-Pacific followed by Indonesia, Australia and Brunei, according to BP Plc statistics.
Global demand for the fuel will grow 17 percent in 2010 to 9,765 billion cubic feet compared with an estimated 7.5 percent increase in 2009 as new import terminals began operating in China, India, the U.K, Kuwait, Brazil, Argentina and Canada, Bernstein said in the report. Interoil rose 7.6 percent on Friday after receiving Government approval for the US$7 billion project.
According to Bloomberg, Talisman plans to develop gas deposits in the Foreland and liquefy the gas in a shore-based or floating terminal to produce as much as 3.5 million tons per year after 2014, the report said.
By Eric Tapakau
Papua New Guinea Post-Courier: www.postcourier.com.pg/
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