3 Feb 2010

PNG LNG project won't help domestic energy situation, says PNG Power

4:18 pm on 3 February 2010

Papua New Guinea's power company says the massive PNG LNG project will not help the country meet its own escalating energy demands.

PNG Power Limited says demand for energy is set to increase by 300 percent over the next five to 10 years due in part to an expansion in mining.

The company's acting general manager of operations John Dangitban, says the PNG LNG project and the economic activity it generates will contribute 67 percent of the increase in demand.

But he says energy produced by the gas project will be exported, and won't help meet PNG's needs.

"Initially we were given a small percentage, us as PNG Power as being an end user, but that percentage was taken away because the developers and the operators of LNG have decided so by way of them securing premium market prices."

John Dangitban says they're confident they can develop hydro-power plants to meet the increase in energy demands.