Papua New Guinea’s government has halted a multi-million dollar liquefied natural gas project, saying it is not being implemented in line with the project agreement.
The PNG government has rejected elements of Liquid Niugini Gas Limited and InterOil Limited’s proposed Gulf Project, saying that far from being a world class project of international scale and quality, is a small scale, fragmented LNG Project, using a combination of different production methods.
The PNG Post Courier reports that InterOil has not responded as yet. In February the company revealed an agreement with Energy World Corporation Ltd. (EWC), an integrated energy company based in Hong Kong, to build a land-based 3 million ton per annum modular LNG plant to process an estimated 2.25 trillion cubic feet of natural gas over 15 years.
In April it also announced that it had reached an agreement with Samsung Heavy Industries and Flex LNG to construct a two million ton per annum floating LNG plant to be moored alongside the proposed jetty located in the Gulf Province.
The government now says this is not as per the original agreement, and while the Gulf project involves a number of high quality companies, none are internationally recognized LNG operators.
More details at Pacific Islands Report