Monday, November 08, 2010

1st batch of LNG pipes arrives

Somare: Gas project making steady progress

THE first shipment of the LNG pipes was offloaded recently at the Gulf of Papua without much drawing much attention, The National reports.
The 850km onshore and offshore pipeline will transport gas from Southern Highlands and Western provinces to the two LNG train facility near Port Moresby where it will be processed.
From there, it will be shipped to major customers in China, Japan and Taiwan.
Shipments are scheduled to begin in 2014.
State Enterprises Minister Arthur Somare said he was pleased that the landmark PNG LNG project had been making steady progress since the final investment decision was taken last December with substantial work being undertaken throughout the LNG project footprint area.
“Whilst there was no formal welcome, the arrival of the first shipment of pipe is nonetheless an important occasion in the development and progress of the project,” Esso Highlands Ltd managing director Peter Graham said.
He said the construction phase and ongoing operations would have a multiplier effect on the PNG economy.
“Even though we are in the early stages of project execution, the country is experiencing the benefit of our investment.
“Through our contractors, we are employing 3,000 PNG citizens in this early activity, which represents nearly 90% of our total current workforce,” he said.
Graham said the project was working closely with local landowner companies to promote direct involvement in project construction.
“In the second quarter of this year, the project invested more than US$170 million (K420 million) with local companies for construction goods and services.”
Graham said the co-operation of communities and the government is necessary for the project’s success.
“The project continues to work to enhance community engagement with the goal of fostering understanding and co-operation on key interests.”


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