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Kumul shows interest in PNG energy hub

Kumul Petroleum, Papua New Guinea’s national oil and gas company, has executed an agreement with KBR for a feasibility study for an energy hub in the Kikori region of the Gulf Province, Papua New Guinea (PNG).

The energy hub, to be known as the Kikori Energy Hub (KEH), is an extension of the Western Pipeline Project scope currently being undertaken by Kumul Petroleum.

“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,” said Kumul Petroleum’s Managing Director Wapu Sonk.

“The extension of the Western Pipeline Project scope to now include a stand-alone 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.”

The scope of the 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 180MW Power Generation facility of which up to 100MW 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 feasibility study includes location and technology screening studies for the LNG liquefaction facility that will identify the most economically feasible concept, inclusive of a floating LNG facility, a gravity based structured LNG facility or an onshore based LNG facility.

The feasibility study is scheduled for completion later this year.