Public Accounts Committee to investigate LNG proceeds

Rebecca Kuku | The National aka The Loggers Times | 25 July 2019

THE Public Accounts Committee wants to know where the proceeds from the multi-billion kina PNG Liquefied Natural Gas (LNG) project are.

It has therefore given the Kumul Petroleum Holdings Limited (KPHL) two weeks to provide the committee with information on the aggregate income generated from more than 500 shipments of LNG to overseas buyers since the first one in 2014.

Committee chairman Sir John Pundari, said they wanted KPHL to explain:

  • How much has been has been made so far from the export of the liquefied natural gas;
  • How much of that money had been given to the State and landowners;
  • how much has been given to the provincial government of the affected areas for development and infrastructure; and,
  • How much was used on KPHL’s cost of operation. 

Sir John said people had the right to know how much was made from the shipments of LNG and where the money was right now.

“KPHL is not a private business. It is not your money or my money,” he said.

“It is the people’s money. So why are we being secretive? KPHL belongs to the people and the Public Accounts Committee has the mandate to enquire.”

But KPHL board chairman Andrew Baing said it was a government business governed by its own legislations and was not subjected to the Public Finance Management Act as the other state-owned enterprises.

Baing said yesterday that he had said all he needed to say on the matter.

“I will comment later in the week after I consult my office and lawyers,” he said.

The committee wants KPHL to provide all the information by August 7, failing which officials will be summoned before the committee.

The first shipment of LNG from ExxonMobil PNG Ltd’s US$19 billion PNG LNG project left the country on May 25, 2014, carrying a cargo bound for Japan.

It was reported at that time that the cargo had been sold on the spot market to Tokyo Electric Power Company Inc.

Since then over 500 shipments of liquefied natural gas had been made.

The committee published a notice this month on its intention to hold an inquiry into the operations of KPHL.

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2 Comments

Filed under Financial returns, Papua New Guinea

2 responses to “Public Accounts Committee to investigate LNG proceeds

  1. Pingback: Public Accounts Committee to investigate LNG proceeds | Industry news

  2. Julius Hosulu

    For my personal opinions I think it is unnecessary for Kumul Consolidated Holdings Limited to be created as we have our state own institutions like Finance Department and Treasury Department to manage all the proceeds for our natural resources. For whose interest is kumul Holding limited being created for the state or for personal interest to suppress other government department who has the sole responsibility to manage and provide our government with much needed revenue to fund the government budget. Also under whose interest are those in the management of the kumul consolidated Holdings Limited represented.

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