The PNG LNG landowner company, Dirio Gas & Power, is expanding its services to cater for the demand for reliable and affordable electricity for parts of the country yet to fully receive this vital service.
Speaking during the PNG Energy Summit & Exhibition 2022 this week in Port Moresby, the Chief Operating Officer (COO) for Mineral Resources Development Company (MRDC) Limited Mr. John Tuaim, said apart from its 45megawatt Gas Fired Station next to the PNG LNG plant site outside Port Moresby, Dirio is in the process to set up a similar one in Hela province.
“We’ve already signed a PPA (Power Purchase Agreement) with PNG Power, so we are now working with NEA (National Energy Authority) to get the regulatory approvals to actually start that project.” He said that the project will give about 66megawatt power from Hela province that would feed the Ramu Power Grid to supply Southern Highlands province to Mt. Hagen and back. The landowner power company is also in the process of supplying gas fired power generation for 12 locations, especially on the coastal and islands centers as a long-term solution for PNG’s power demands. The power company plans on achieving this by putting mini power generation facilities on barges and move them around the islands to supply power to the centers that relay on diesel and mini- hydro generation, which the costs are quite high.
“We’ve already started feasibility studies on this, we’ve already spoken to technology developers on this and that’s ready.” Tuaim added that the submission on this has already gone to the National Executive Council (NEC) to consider this proposed project to address power supply issues. “When its done, we will work with NEA and PNG Power to roll this out,” said the COO.
However, these plans are for the domestic use of the LNG, but Mr. Tuaim said Dirio is planning to go big by looking at applying the same concept to the other pacific island countries. “So, in the longer term the island barge concept that we apply within PNG, we can take it to New Caledonia, Fiji, Vanuatu, Samoa and the Solomon Islands, so that’s something we can all do it together to generate sustainable revenue for our landowners and Papua New Guineans.” Dirio is MRDC’s investment project in the power generation business.
It is an investment which offers sustained income to the shareholders outside of the oil and gas royalties and provides project security to PNG LNG Project. “Our mission is to be the leading IPP (Independent Power Producer) not only in PNG but also in the pacific and in the process, we want to drive cleaner, affordable and reliable energy.”