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Kumul Petroleum to evaluate feasibility of Kikori Energy Hub

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LNG Industry,

Kumul Petroleum Holding Ltd has announced that it has signed an agreement with KBR to provide conceptual development and feasibility analysis services for an energy hub in the Kikori region of the Gulf Province of Papua New Guinea.

The Kikori Energy Hub (KEH) is an extension of the Western Pipeline Project scope currently being undertaken by Kumul Petroleum. The Managing Director of the company, Wapu Sonk, said: “Now that we have completed the Pre-FEED of the Western Pipeline Project, we are focusing on the Downstream Commercialisation options available to produce an economically sound project, and how best we can create In Country Value (ICV) to the people of Papua New Guinea whilst maximising our return on investment.”

“The extension of the Western Pipeline Project scope to now include a standalone downstream LNG process development, combined referred to as the Kumul LNG Project, is a natural progression. Whilst an Economic Impact Assessment will be undertaken to assess the ICV to PNG, it is estimated up to 30 000 local employment opportunities will be created during the construction phase, if the project is proved feasible”.

Jason Pollock, Project Director for the Kumul LNG project, said: “the scope of the concept feasibility study currently being undertaken to evaluate the potential KEH economics will include a mid scale LNG liquefaction and regional export facility to encourage future PNG electrification via gas driven generation in remote areas, a 180 MW power generation facility of which up to 100 MW has been allocated for Western and Southern Highland electrification via future grid connection, a methanol process facility to enable local petrochemical bi-product production, and a condensate stabilisation, storage and regional export facility.”

The scope of the conceptual feasibility study includes location and technology screening studies for the liquefaction facility, which will help to identify the most economically feasible concept, inclusive of an FLNG facility, a gravity-based structured LNG facility, or an onshore-based LNG facility.

Kumul Petroleum claims that the concept study is scheduled for completion this year.

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