First ‘Western Pipeline’ gas by 2022/23

Kumul Petroleum Holdings believes that the proposed ‘Western Pipeline’ will have its first gas channeled through by 2022 or 2023.

This will only be possible if all stages of preparing the establishment of the pipeline go smoothly.

The Western Pipeline aims to aggregate all the gas fields in the Western Province into a single pipeline that will run all the way to Port Moresby.

The gas fields include P’yang, Stanley, Ketu, Elevala, Ubuntu, Puk Puk, Douglas and Kemu.

The proposition is expected to have the potential to underpin all manner of gas commercialisation.

Speaking at the PNG Chamber of Mines and Petroleum Conference in Sydney recently, KPHL Managing Director, Wapu Sonk, said they have just completed a multifaceted Concept Study.

The study established: The stranded reserves in place; the ability to be able to aggregate them by pipeline; the possibility for off-takers to use the gas either domestically or by export; and seven different configurations of pipelines and one initial preferred option selected.

“We’ve put together an experienced internal project team to own the project, which will soon be moving into their own offices in Port Moresby.

“We’ve appointed Advisian Worley Parson as our technical program mangers (and) we’ve entered a master service agreement with China CAMC Engineering and China Pipeline Bureau,” said Sonk.

KPHL expects preliminary frontend engineering design (Pre-FEED), which began in the fourth quarter of 2016 and will be completed by the second quarter of 2017.

A final investment decision (FID) is expected in the first quarter of 2018 and the first gas in the pipeline by 2022 or 2023.

KPHL believes that the Western Pipeline is critical for the development of the proven and potential petroleum fields in the Western Province.

Picture credit: KPHL

Cedric Patjole