PNG can produce 19 GW of power says Prime Minister

Papua New Guinea has “the potential of becoming a huge producer of green products for the world” with 19 gigawatts of power already estimated out of the Purari , Kikori and Stricken hydro potentials and the West New Britain geothermal projects, Prime Minister James Marape has been told.

Chief Executive Officer of green energy developer Fortescue Future Industries Julie Suttleworth said this on Friday (03.12.21) in her brief to the Prime Minister when the CEO was on her way to visit project sites in Gulf and West New Britain.

She also appraised the geothermal sites of West New Britain as being “one of the top three areas in the world” for Fortescue projects.

The CEO was responding to the Prime Minister’s query on whether PNG green energy potential would meet the projection as set by FFI owner and environmentalist, Dr. Andrew Forrest, who said PNG could provide up to 25 gigawatts of power from its renewable energy sources.

Suttleworth said: “We have currently indicated that there was about 15 gigawatts of hydropower that is in the Master Development Agreement that we could access. So we are starting at 15 gigawatts of hydropower; there is approximately 4.3 gigawatts of geothermal also that we have identified at this stage.

“This is early days; there may be more. So that totals to about 19 gigawatts that our study team has already identified. Not quite 25 gigawatts yet, but we hope that over time, we will get to that number. But round now, we know that there is 19 gigawatts of potential.

“If all these projects of about 19 gigawatts of power are developed, they can make over 10 million tonnes per year of green hydrogen, or about 13 million tonnes of green ammonia, or a combination of both, because ammonia is heavier than hydrogen.

“So there is the potential to be a huge producer of green products for the world.

“It is a very important part of our portfolio. We have made a commitment globally to make 15 million tonnes of green hydrogen per year, much of that will come from Australia, but over 2 million tonnes of this will come from PNG which is a huge percentage of our target.

“So the overall vision is to make over 2 million tonnes of green hydrogen from PNG, develop over 19 gigawatts of geothermal and hydropower across the various projects, as well as decarbonise PNG, and have excess for export which is a huge amount to export, because PNG won’t need all. 

“We will be doing the studies on the hydropower system to optimise the design of the hydropower dams phase process. So the first Purari sites will be 3 gigawatts. And then there will be stage by stage development – upper Purari, Strickland and others to get to the total of 15 gigawatts. So that does not all happen at once. Start off lower Purari and then others up to 15 gigawatts.

“And at the same time, we need to do more investigative work on the geothermal potential. Geothermal exploration is very expensive. So you need to do a lot of fieldwork first to determine where is the drill bit is going to go down to determine the geothermal potential. This is not done in many places around the world because it is so expensive. Tens of millions of dollars per one hole. It is very expensive drilling. We think there’s at least 4 gigawatts of geothermal potential that needs to be explored and determined to the best way to develop.

“So part of studies is working out the best way to develop the hydropower resource and the geothermal resource. Once we got that renewable power, we need to put the transmission lines to the industrial hub. So of course, in the hydropower, you are linking Strickland, Upper Purari, Lower Purari altogether, so then take the transmission line to the coast where there is a port location.

“We are optimising, right now, the best location for the port. We got two or three options.

“And then we need to optimise the hydrogen production facility. How many electrolysis do we need to make the best use of power, and that electrolyser will take the renewable power, electrolysis of water - so we need to determine where we getting the water from. Is it going to be seawater, or from the river. And then we have to clean that water up to use for electrolysis.

“Electrolysis will make hydrogen with zero emissions. That hydrogen can be used or exported or made into ammonia. This first project that we do, we’ll probably make ammonia because it is easy to transport ammonia.”

Prime Minister Marape encouraged Suttleworth to explain the process of making green hydrogen and green ammonia because of the lack of knowledge and understanding of how the process worked.

These projects are similar to the magnitude of a large LNG projects in exploration, construction, operation and income generation to the country which has seen Government full support to progress them.

Prime Minister James Marape welcomes tabling of deficit budget (K 5.895 billion)

Prime Minister Hon. James Marape has welcome the tabling of the K22.175 billion 2022 Budget by Treasurer Ian Ling-Stuckey in Parliament on Thursday.

He said it would help Papua New Guinea on the path to economic recovery as well as support successful delivery of the 2022 National General Election.

“The total Budget of K22.175 billion is 9.3 per cent higher than the 2021 Supplementary Budget, with a revenue envelope of K16.190 billion which is 18.4 per cent higher than the 2021 Supplementary Budget,” Marape said.

“The fiscal deficit for 2022 is K5.895 billion, which is 5.9 per cent of the 2022 Gross Domestic Product (GDP). Compare this deficit to K6. 6 billion or 7 per cent of GDP in 2021.

“In 2022, the PNG economy is projected to grow strongly by 5.4 per cent, from K93 billion in 2021` to K102 billion.

“The 2022 Budget will continue the budget repair and economic recovery path, with strong focus on non-resource sector growth, and at the same time support families and businesses.

“There will be increased development and capital funding to high priority programmes and sufficient funding for key social sectors to stimulate economic growth.

“The delivery of my Government’s third Budget today, despite the many challenges and obstacles, shows clearly the work that we have been doing.

“It points to the fact that our path to economic recovery is correct, and with critical analysis by all multilateral Budget partners like Asian Development Bank, International Monetary Fund and World Bank, our positive trajectories show an increase in GDP for next year and beyond as well as a declining budget deficit trend.

“The handing down of the Budget is the single most-important parliamentary occasion of any government.

“With hangovers and effects of a slowed economy due to COVID-19, your Government has used the last three years of National Budget to ensure our domestic economy was functional and alive, and our crucial services were maintained.

“I want to assure our people and all stakeholders in our economy that we are responsible and prudent to ensure expected outcomes of our Budget are achieved.”

PM Marape said since his Government took office in May 2019, it had used the Budget to support schools, hospitals, COVID-19 programmes, road construction, SME funds, retiring old debts and contractual obligations, paying outstanding industrial awards, and many others.

“Our 2022 Budget embraces our national outcomes including opening up all parts of our country; intervening in sustainable economy; starting up Porgera, Papua LNG and Wafi-Golpu for our economy; paying for our children’s education in 2022 and beyond; building new hospitals; ramping up support to Bougainville; clearing up projects like new Supreme Court Building and ensuring the 2022 General Election is fully funded,” he said.

“All the above we are doing whilst maintaining strict discipline in sticking to our money plan, with our development partners observing our discipline to reforms.

“Key in our reforms is to borrow low-cost US dollar denominated borrowings like the Australian $400-million dollar and the Japanese Government US$280million 0.01 per cent five-year grace period lending, which all came directly into our economy by way of Budget support.

“I just want to assure our people and our economic stake holders that we are going through tough times, but we will use the Budget policies wisely to share the load of burden and also ensure key infrastructure like the 1900 kilometres of road we built the last two years all over rural PNG through our flagship ‘Connect PNG’ programme are continued.”

Source: Press Release

Housing challenges: Any aspiring politician talking about it?

Housing issues in Port Moresby is an old story.

Many working class families budget are hard hit by rentals and the consequence is the take home pay is very low despite a possibly higher salary than average Papua New Guinean.

The minimum wage rate is K3.50 per hour.

Rentals in Port Moresby average around K3,000 to K4,000 per month for a decent three bedroom apartment or house.

If you earn K80,000 per annum as your gross salary.

Forty percent of that (K32,000) can go to rentals as salary sacrifice.

Your salary would be around K48,000 but it seems there would be shortfall so you'd have to pluck another K4,000 from your salary to meet your rental for the year if it was at K3,000 per month.

But on a serious note, not many people earn around K80,000 per annum.

Rentals have soared exponentially during the construction period of the PNG LNG project pushing many average income earners in public and private sector to "bunk up" or stressfully rent a room in settlements or illegal buildings around town at rates of K300 to K500 per fortnight.

That was even the case pre-LNG construction so we were into this doldrum, an already depressing situation well before.

Imagine the rates mentioned were just at a rate for a room, not a whole house where one would call home.

The government has been called on to look into housing issues but I rather think the private sector should also help in alleviating this.

Many city residents who make this city function also live in settlements.

Many contribute to making thousands or millions for companies that allow their managers to live in posh locations.

It's time to make sure, everyone is equally afforded a decent housing to be regarded a home, make families happy that they have space.

Elections and we hardly hear candidates talk about how they are addressing housing issues.

The working class must ask about this.

If they have not, I am asking through this medium.

Did any candidate for the Moresby Northwest by-election highlight what he or she would do to address this.

Housing and settlement expansions are big challenges for the city that must be addressed appropriately and gradually now or we face a problem in future.

Alarm bells have already sounded that we have a problem.

Please address housing woes and bring rentals down.

If we cannot do this, we got to increase wage rate so residents can afford to live in a decent place that is truly expensive.

Gulf Province set for transformation as government announces key infrastructure projects

 Good news for the people of Kerema and Gulf Province.

The government led by Prime Minister James Marape is serious about turning the province into a hub of business, trade and host of major oil and gas projects.

Marape spent two the weekend in Gulf Province launching the Ihu Special Economic Zone project (ISEZ) at Ihu and spent a day in Kerema where he announced several important infrastructure projects.

The ISEZ is a K100 million project that is aimed at creating thousands of jobs and generating billions of monies to the government coffers.

The National Executive Council has approved monies for this project to be managed by a private company.

Project director Peter KenGemar has been promoting this project internationally-they are hoping that reduced taxes and other business incentives will lure potential investors who will transform Ihu and Gulf a lot.

After about 20 years the Ihu airstrip was also launched during James Marape's visit and Transport Minister William Samb who is the Goilala MP was also there.

In Kerema, Marape urged the people who are in Port Moresby or anywhere else to return to Kerema.

He said the government was allocating K100 million for the upgrade and resealing of the Hiritano Highway.

From this K100 million, K70 million will be loaned from the World Bank and K30 million would be from the government.

Marape said Gulf hosts some mega project in oil and gas like the Papua LNG, Pasca offshore gas and now the proposed ISEZ project.

The road would certainly help develop these projects and he has urged the people to return and venture into fishery, farming and get into SME businesses.

He said the Kerema rugby league field now turned into a market for betel nut vendors would be developed with a K100,000 from the National Gaming Control Board (NGCB).

Marape said a K20,000 would go to support the basketball competition.

The bare roads in Kerema town would be sealed with a K 5 million funding.

 

Prime Minister Marape told hundreds of people who gathered in Kerema that the Hiritano Highway was a major road that connected Gulf and Central with NCD.

 

“The National Government will support many of the upcoming resource projects like Papua LNG and Pasca, and others like the Ihu Special Economic Zone in the Gulf province,” he said.

 

 

 “By this time next year, the contractors will be working on upgrading and reconstructing work on upgrading the last stretch of the highway that has deteriorated and not sealed into Kerema,’’ he said.

“You are lucky people as some of you live along the corridors of the major Hiritano Highway linking Kerema to Malalaua, and into the vast Central Province,” Marape said.

 

“Both provinces have valuable resources like land and fisheries and marine resources.

 

“I appeal to you people to allow any road programmes and projects to flow through, as when there is a road, money will flow and other services will trickle down to the people.

 

“We appeal to you (Gulf people living in other provinces) to return home as the National Government will work and partner with your provincial government to create opportunities for you when the Hiritano Highway and Kerema Town roads are fixed.”

 

 Gulf Province is set to be transformed.

 

NBC managing director wants board and management to work within their responsibilties

National Broadcasting Corporation managing director Kora Nou says the organisation and the board were at loggerheads recently, moving in and out of the courts.

This has adversely affected the oldest broadcaster's operations.

Apart from that, the NBC and the whole of the ICT sector in a short space of time when there was a change in government had five ministers.

The recent one being Hon. Timothy Masiu.

Minister Timothy Masiu speaking when the board members took oaths and affirmations of office

“That’s a record of some sort,” he said during the board members took oath and affirmations of office last Friday.

The organisation also did not have a functioning board for a year.

“We had a start stop situation,” Nou said.

In welcoming the board headed by Pius Tikili, he said he was content there was a seamless transition now with the installation of a new board and they would be inducted in due course.

But Nou has stressed what Minister Masiu also emphasised that the board and management should be clear about their roles and responsibilities.

“The demarcation are to be clear,” he said.

“The board provides the strategic directions and the management and staff has to implement.”
“I also pledge loyalty and dedication to the new board,” he said.

He said the staff and management looked forward to “bring it (NBC) back to the glory it used to have.”

Former board chairman Timothy Tala and member Ps Babani Harry has been retained to ensure continuity at the board level guiding the new members on many projects and initiatives the NBC has embarked on.

The other members are deputy chairman Emil Tenoa and only female and lawyer Zinnia Dawidi.

New Ireland develops model tourism village

New Ireland has a first tourism model village.

The provincial government has recognized Lossuk Village in Ward Seven of the Tikana Local Level Government area as the First Tourism Model Village.

Governor Sir Julius Chan says developing tourism village concepts endeavours to address social ills that mostly cause law and order issues.

Acknowledging that half the population are young people, he said immediate attention of the government is to contain abuse of alcohol, illegal home brewed alcohol which described as poisonous, and marijuana.

The concept will enable the village to tap into the economic benefits of tourism, agriculture, fisheries and forestry through the village planning committees in wards.

At the the local level governments level they will develop small businesses in communities to sustain and empower themselves with the youth population taking the lead.

The New Ireland Government assisted with K10,000 to construct ten VIP toilets which were completed by the youths and launched two days before Christmas last year under the New Ireland Government’s WaSH project.   

The Lossuk Tourism Model Village concept is based around the traditional New Ireland hausbois’ but includes a central meeting house and eight hausbois constructed through sweat equity valued around K50,000 by the youths.

The provincial government has directed the New Ireland Tourism Authority and the provincial administration to rollout the project to the remaining nine LLGs in the province.

The Hausboi at Lossuk is also captured in the design of the new Provincial Assembly building which is currently under construction.  

The provincial government has appointed Hon. Demas Kavavu who has been closely involved in the establishment of the Cultural and Tourism villages to involved in the roll out of the concept.

Papua LNG landowners want the gas agreement reviewed

The Papua LNG Project to be developed in the Gulf Province still has issues to be ironed out.

The state may have signed the agreement with developer Total SA PNG and its minor partners Oil Search and Exxon Mobil but the landowners appear to be still aggrieved about the content of the agreement.

One of the vocal groups is the Purari Development Association, the umbrella association representing eight tribes from the Baimuru local level government- the area which hosts the Elk and Antelope gas fields.

The landowners issued a statement yesterday in a press conference calling on Prime Minister James Marape to “defer the Papua LNG project indefinitely until such time all proposed changes to resource laws in Papua New Guinea are done and that Papua LNG Project can be the first LNG project that will be negotiated and signed after these long outstanding reforms are enacted and passed into law.”

“As landowners we know this agreement does not serve our interests and must be reviewed and renegotiated.”

In making this statement through General Secretary Roy Daniel Evara, they however congratulated the Prime Minister for his election last Thursday.

“The executives of PDA and the people of Baimuru Sub-District in particular celebrate his ascension to the office of the Prime Minister because we have read, heard and seen him speak publicly about issues relating to the recently signed suppressive and controversial Papua LNG gas agreement that we have been and will vigorously fight against.”

“We are very encouraged by the Prime Minister’s vision to make Papua New Guinea the “richest black Christian nation” in the world by reviewing the outdated resource laws that will be tailored to drive this agenda.”

“As end users directly impacted by such laws, we welcome the Prime Minister’s call to work with likeminded citizens to gauge our views on how we can revolutionise and transform PNG into the future,” Evara stated on behalf of the association.

Evara said they were firm that the Papua LNG gas agreement must be reviewed because it was rushed and poorly negotiated.

Further they claim it was signed without conforming to several very critical pre-conditions under Oil and Gas Act 1998 and the land and resource owners were not consulted. They described the agreement as dictatorial in that it specifically directs Ministers of State and Parliament to change laws where required to suit the terms and conditions of the agreement which favours foreign developers.