Resource development remains central to Papua New Guinea's (PNG) economic growth, and as the global shift toward greener energy continues, liquefied natural gas (LNG) is seen as a key transition fuel.
During a media briefing on September 30th, Kumul Petroleum Holdings Limited Managing Director Wapu Sonk emphasized that PNG is ready to welcome investors in its energy and petroleum sectors.
“While PNG transitions to more sustainable energy production, we aim to responsibly market our LNG globally,” said Sonk.
He noted that LNG will continue to play a pivotal role in both domestic and international markets.
The upcoming Petroleum and Energy Conference, scheduled for October 17-18 at the Hilton Hotel in Port Moresby, will serve as a critical forum for discussions on policy updates and new projects.
Organized by Kumul Petroleum Holdings, the event will be the only conference dedicated to the petroleum and energy sectors in PNG.
Policy Discussions and Fiscal Regime Updates
Sonk stressed the need for changes in PNG's fiscal regime to maximize the benefits of resource extraction.
“This conference is an opportunity to discuss existing and new policies that will shape the future of the sector,” Sonk noted.
International speakers, including economist Dr. Fereidun Fesharaki and fiscal regime expert Daniel Johnston, are expected to attend.
Johnston will provide insights on production-sharing regimes and offer comparisons with countries like Indonesia and Qatar to help PNG optimize its resource management laws.
Sonk also expressed excitement about the insights PNG will gain from the University of Victoria’s presentation, which will assess the current state of the PNG LNG project a decade after its inception.
“The government has been discussing fiscal regime changes by 2025. Where do we stand on that?” Sonk asked.
Renewable Energy and Transitioning to Green Solutions
The conference will also address PNG’s transition to renewable energy, as Sonk emphasized the changing global landscape, urging stakeholders to harness PNG’s vast energy resources responsibly.
“Governments worldwide are adapting their policies, and PNG must do the same to remain competitive and ensure long-term sustainability.”
PNG’s renewable energy potential is immense, particularly in hydroelectric, geothermal, and offshore wind energy, and Sonk pointed to the country's significant hydro capacity, estimated at 40-50 gigawatts, and offshore wind potential of up to 300 gigawatts.
Collaboration and Energy Access
Ronald Maketa, Managing Director of the National Energy Authority (NEA), added: “Despite being an exporter for over 20 years, PNG has yet to fully realize the economic benefits of its energy sector.”
Maketa argued that PNG’s energy rates should be lower than those of neighboring countries and that improved energy access is key to driving economic growth.
“Energy powers our economy. It is essential for job creation, industry development, and national prosperity,” Maketa noted.
He also pointed to the Medium-Term Development Plan (MTDP), which prioritizes energy alongside agriculture and industrialization, as evidence of the government's commitment to advancing the sector.
“We need cheaper, reliable, and renewable energy to support our development aspirations,” he added.
Investment Opportunities and Industry Growth
Petroleum and Energy Minister Hon. Thomas Opa highlighted the significant opportunities for investment in PNG’s energy sector, stating that the sector is a major driver of economic growth.
"This industry creates jobs, generates state revenue, and funds infrastructure development across the country,” said Opa.
He confirmed that several exploration licenses are currently being processed, including a significant offshore drilling collaboration between TotalEnergies and Petronas.
“This project will be a first for PNG in many ways,” he remarked, adding that more details on exploration licenses and potential investors would be provided during the conference.
As PNG continues to attract interest from major multinational corporations, Opa emphasized that sustainability remains a key focus. Companies like ExxonMobil and TotalEnergies are actively working to reduce their carbon footprints in PNG, aligning with global efforts to minimize environmental impacts.
The 2024 PNG Petroleum and Energy Conference is set to attract national and international attention, providing a platform for policy discussions, investment opportunities, and networking.
The event will also offer opportunities for brand promotion and enable businesses to showcase their projects to industry leaders and potential investors.
