PNG gas reserves set to fulfill Asian demand

PAPUA New Guinea with its large natural gas reserves and operating LNG export facility, is well positioned to help fulfill Asia’s demand for gas, says High Artic chief executive officer Tim Braun.

"The long term demand for clean energy in Asia will in part be fulfilled by LNG imports. Papua New Guinea with its large natural gas reserves, and operating LNG export facility, is well positioned to help fulfill this demand.

"High Arctic will benefit from this opportunity as a substantial portion of our revenue is earned operating under fixed term contracts in PNG," Mr Braun said.

"We continue to evaluate other growth opportunities in both PNG and Canada, and recognise that this capital budget provides flexibility to increase our capital spending throughout the year if expansion opportunities materialise.

While announcing an approval of a capital budget last week and commenting on the Asian LNG imports, Mr Braun said budgeted maintenance capital expenditures in 2015 of CAN$4.2 million (K9.32 million) will ensure that the equipment in both PNG and Canada continue to operate at the highest industry standards.

High Arctic has announced that its board of directors has approved a capital budget of CAN$36 million (K79.9 million) for 2015.

This budget will be used to complete previously announced capital spending projects and to address maintenance and incremental growth opportunities next year.