Kumul Petroleum Holdings Limited (KPHL) says it welcomes landowners to become commercial equity partners in the Port Moresby Power Project.
KPHL Managing Director, Wapu Sonk, said this can be possible through the Mineral Resources Development Company (MRDC) in NiuPower Limited.
NiuPower Limited is the Independent Power Producer (IPP) that has been created by KPHL and Oil Search Limited to underwrite the K365 million (US$120 million) gas-fired power station from the PNG LNG liquefaction plant near Port Moresby.
Sonk, who is also the Chairman of NiuPower, said this in response to Hela landowners accusations that had been denied the opportunity to participate in the new power station.
“NiuPower has always been keen to bring in additional equity partners. Of course, any equity participation must be on commercial terms consistent with the terms agreed between NiuPower and PPL. Otherwise, there will be substantial increases in the cost of power to PPL and its customers.”
He said KPHL and Oil Search previously invited MRDC to take equity in NiuPower’s investments to ensure landowner participation in the development of the Port Moresby Power Station.
“This offer remains open and NiuPower is awaiting engagement from MRDC to discuss the commercial terms for equity participation. We therefore urge landowners to work constructively with MRDC to achieve their participation.in this milestone power project,” he said.
Sonk added that following the establishment of the Port Moresby Power Station, generation requirements for the National Capital District will be covered for a number of years.
“With the creation of NiuPower and the development of the gas-fired Port Moresby Power Station, Kumul Petroleum and Oil Search directly contribute to the Government’s energy objectives of electrifying 70 per cent of PNG by 2030 – today estimated at around 10 per cent.
“We recognise that electrifying PNG is a development game-changer that will improve the lives of our people in line with Vision 2050,” Sonk said.