PNG Government to review and hand over Gas to electricity projects, says PM Marape

 PNG Prime Minister James Marape says government officials will look at the Hides PDL 1 benefit sharing agreements for the gas to electricity project to finally retire the transfer of the project to the landowners and the provincial government.

PM Marape said this when responding to questions from the MP for Komo-Magarima, Maneseh Makiba, in Parliament yesterday in relation to the Hides gas to electricity project that runs from Hides PDL 1 and supplies power to the Porgera gold mine in the Enga Province.

Mr Makiba wanted to know if the Government had any plan to acquire the project from the operator (Oil Search) at a time when the new Porgera Mine Agreement was continuing and have the project transferred to the landowners and the Provincial Government of Hela as stipulated under Section 9.6 of the PDL 1 License Based Benefit Sharing Agreement (LBBSA).

Under the agreement the provincial government and the landowners are supposed to own 50-50 basis of the project.

PM Marape in reply said the Government’s position was clear and that was for the people to gain maximum benefit for their resource.

He said the clause referred to by the Member (section 9.6) of the LBBSA was the latest agreement, while there was an original clause in the Agreement that stated that after 10 years of operation since 1990 for the project to be transferred to the landowners but that had not eventuated up until the PNG LNG agreement was signed.

PM Marape said he would get Government officers to look at it and see if there is any provision under such clause for the project to be transferred to the people.

PM Marape said under the current PNG LNG, there was also a small provision for DMO to access additional gas from the current site.

“We are looking to work in a program to access gas fired electricity from current gas project to supply the highlands provinces and complement the electricity supply from the Yonki hydro plant,” PM Marape said.

“But let me assure the landowners and the provincial government that the clause is already there so it’s just getting the instruments to be tied and work on a transfer within the clause in the LBBSA.

“It is outstanding so we will have a look at this one and hopefully the National Government should put a conclusion to this,” PM Marape said.

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