ExxonMobil, PNG Power Sign MoU
ExxonMobil PNG, operator of the PNG LNG project, and PNG Power will undertake a joint feasibility study in 2019 to assess the viability of providing power to the province of Hela in Papua New Guinea (PNG).
The two parties have signed a Memorandum of Understanding to begin a study of the cost and technical specifications required to safely transmit electricity generated at the Hides Gas Conditioning Plant (HGCP) to the local community through PNG Power, ExxonMobil PNG said December 3.
"This partnership with ExxonMobil PNG signals the future is here. PNG Power has ambitious goals to switch from high cost, dirty fuels to lower cost, cleaner energy sources. We are delighted to join with ExxonMobil to undertake the feasibility study to assess the viability of utilising local gas to power Hela province," said PNG Power's managing director, Carolyn Blacklock.
ExxonMobil PNG will look at delivering up to 5 MW of power from the HGCP to a grid owned and managed by PNG Power in Hela province.
ExxonMobil PNG's managing director, Andrew Barry, said, "The power generation project has the potential to positively impact the people of Hela Province and continue to improve their standard of living through rural electrification. It complements the initiatives by Hela provincial leaders and others who are investing in electricity transmission and generation across the country."
The HGCP is located just outside of the township of Hides in PNG’s Hela province and processes up to 1bn ft3/day of gas from eight wells. At the plant, gas, condensate and water are separated and treated before being sent via separate pipelines to other facilities in PNG for further handling. The gas is transported along a 700 km-long pipeline to the LNG plant near Port Moresby, where it is converted into liquid form ready for shipping.