The National | December 2, 2019
THE PNG LNG project is yet to deliver the billions of kina promised to the people of Southern Highlands but the operator is already accelerate production of gas from the fields in the province, says Governor William Powi.
Powi said as part of developing the P’nyang project, the proponents were trying to use the PNG LNG gas fields in the province to produce gas between 2024 and 2028 under the Associated Gas Development.
He claimed it would deplete the gas quickly while they are waiting for the P’nyang gas to come into the PNG LNG third train.
He said the plan would have a negative impact.
Powi said the landowners and provincial government had been promised billions in development levies and royalties.
They had allowed for capital expenditure deductions by way of depreciation allowance in calculation of royalty and development levy, allowing capital uplift premium and allowing for operating expenditure recovery in the calculations.
In fact, the 2 percent royalty and development levy becomes less than 1 per cent, an acceleration of the cheating by the developer.
“This should not be allowed at the expense of the people of Southern Highland and its landowners,” Powi said.
He said the development levy and royalty should be calculated at 2 per cent gross value of well head and not 1 percent “as we are currently receiving”.
He told Petroleum and Energy Minister Kerenga Kua in Parliament that the people would continue to be marginalised with the use the PNG LNG gas fields in Kutubu, Moran, Agogo, South East Mananda and Gobe oil under the Associated Gas Development.