Front-End Engineering Design (FEED) activity for the PNG Biomass project has been completed.
Oil Search Limited states in its 2018 First Quarter Report that following FEED completion, discussions took place between government and lenders on potential financing arrangements.
The project, located in the Markham Valley, Morobe Province, is a long-term renewable energy initiative which uses wood chips from trees sustainably grown and harvested in surrounding plantations, to fuel a biomass power plant to provide up to 30 Megawatt (MW) into the Ramu grid.
Meanwhile, Oil Search says during the quarter, it continued to mature its various power initiatives with construction of a 58 MW gas-fired power station at Caution Bay, adjacent to the PNG LNG plant site.
First electricity is targeted to be delivered to Port Moresby for the first quarter of 2019.