Positive results for LNG market: KPHL

The LNG market is going to cross from over-supply to under-supply sometime in the next 5 to 7 years.

Kumul Petroleum Holdings Limited managing director Wapu Sonk made these remarks during the 2nd Petroleum and Energy Summit in Port Moresby on Monday.

However, Sonk said PNG is uniquely positioned and is central to the biggest demand growth in South East Asia.

When the price of LNG drops, it will increase the demand and PNG will be in a better position to market its LNG, stated the MD.

He added that even though PNG is a relatively small supplier of LNG and a good diversification for buyers heavily dependent on Australia or Qatar, it will deliver to the world.

He told delegates that PNG is a relatively cheap source of gas, able to compete with other potential developments in Australia, East Africa and the USA and encouraged investors to invest in the project.

Sonk also clarified that KPHL fully intends to exercise the full 20.5 percent entitlement in any project in the country.

The recent unpredictable oil and gas prices proved beyond doubt that equity is king, and the State must and will exercise this equity if it is to share fairly in the benefits from the developments.

Sonk further mentioned that KPHL has signed a Heads of Agreement with Total to jointly market our LNG with them to the world.

Freddy Mou