According to the latest report by Bloomberg, less than three years after Papua New Guinea began sending its gas overseas, the country’s future may be determined by how much of it stays at home.
Papua New Guinea wants some of the world’s top energy explorers to allow a portion of its natural gas to stay in the country. The fuel pumped from remote mountain ranges and forest-covered hills could spur industries, generate cheaper power for an electricity-starved population and even help catch tuna.
The developing country of less than 8 million people is one of the poorest in Asia, with soaring crime rates, high unemployment, and almost half the population living in squatter settlements. It is counting on energy resources to boost finances, and needs foreign investment.
More sustained development will mean using some resources for itself. When the government signed deals almost nine years ago that led Exxon Mobil to build a LNG terminal, it allowed the energy giant and its partners to export all of the gas it found. The project’s US$19 billion price tag was more than the country’s annual gross domestic product.
The government is also aiming to electrify 70% of the country by 2030, and while it wants all of it to come from renewable sources, natural gas could provide a bridge or alternative to reach its goal. Just 13% of the population has access to electricity, and even then it is not uncommon for power outages to strike multiple times a day, forcing businesses to invest in expensive back-up diesel generators.
Read the article online at: https://www.lngindustry.com/liquefaction/06032017/papua-new-guinea-asks-to-keep-gas/