The commercialisation of all aggregated gas fields in Western Province has the potential to generate over K150 billion over a 20 to 30 year lifespan.
Horizon Oil Chief Executive Officer, Brent Emmett (Pictured), said during the Petroleum and Energy Summit in Port Moresby that the potential income can be generated through the proposed Western Pipeline.
Horizon Oil and Repsol both own a 66 per cent stake in the appraised Western Foreland fields commercialisation project in the province and have in place a road map for the delivery of a ‘Western LNG’ pipeline.
The ‘Western LNG’ pipeline will run from the aggregated appraised Western Foreland fields of Stanley, Elevala, Ketu, Tingu, Puk Puk, Weimang, Douglas, Langia, through a pipeline to an off shore LNG plant near Daru.
However, the proposal by Kumul Petroleum Holdings Limited (KPHL) to progress the ‘Western Pipeline’ which aggregates all gas fields , including Exxonmobil and Oil Search’s P’nyang filed, and channels condensate via a pipeline to Port Moresby has been welcomed by Horizon.
“We intend to mature our Western LNG Project through Daru. We will continue to work on that as our base case. Why? Because that’s a project that Horizon and Repsol can deliver without any other requirement from outside participants. But at the same time we would be enthusiastic supporters of the Western Pipeline Project,” Emmet said.
He later added “This is not a small project it’s a significant project and it’s a valuable one. The Western Pipeline, if it were to involve P’nyang it will be a much larger project with the potential of $ US55 –$ US65 billion (K165 billion – K195 billion) in revenue over the life of the project.
Emmett said the commercialisation projects will create long term employment and economic opportunities in the province; provide gas for power generation for PNG mines, industries and communities; supply gas to PNG-located industrial consumers (eg: methanol, fertiliser; and project infrastructure will benefit the petroleum industry, other industries and communities.
He said the biggest success factor would be collaboration of al license holders to enable gas aggregation, success by KPHL to execute and finance Western pipeline, and government support.
“To make this succeed what we need is collaboration, cooperation and Government leadership are key.”