Page 10 - AsiaElec Week 08 2022

AsiaElec COMMENTARY AsiaElec

P’nyang partners sign

gas agreement with PNG

government on emissions

PNG THE partners in the proposed P’nyang devel- electrification campaign in Western Province or
opment in Papua New Guinea’s (PNG) Western another agreed location.
Province have signed a deal with the country’s The announcement comes weeks after San-
government over the development of the field. tos completed its merger with Oil Search in
The agreement marks a step forward for a pro- December. As a result of the move, Santos has
ject that has been delayed and redesigned over increased its stake in PNG LNG to 42.5% and
the past two years as the country’s government also now owns a 22.8% interest in the proposed
has demanded more favourable fiscal terms for Papua LNG project, operated by TotalEnergies.
the country. It holds a 38.5% stake in P’nyang.
Separate announcements came this week
from all three partners in P’nyang – operator Breakthrough
ExxonMobil, Australia’s Santos and Japan’s JX The agreement also follows over three years of
Nippon Oil & Gas Exploration. According to on-and-off negotiations with the PNG govern-
Santos’ statement, the agreement “provides a ment following a change of leadership in the
clear framework” for the future development of country. PNG Prime Minister James Marape
the project. The deal reportedly sets out a fiscal took office in May 2019 following weeks of polit-
framework, as well as supporting project scoping ical turmoil, including the resignation of former
and evaluation. Prime Minister Peter O’Neill. Marape had quit
Gas from P’nyang would be used to backfill O’Neill’s government the previous month in
the existing PNG LNG project, which is also protest over resources policy and a deal signed
operated by ExxonMobil. Santos noted that up by Port Moresby with the Papua LNG partners
to 5% of P’nyang’s gas output would be made in particular.
available to the PNG government to support its When Marape took office, he pledged to

P10 www. NEWSBASE .com Week 08 23•February•2022