Trans Wonderland Limited, an exclusive provider of transport and logistics services to Papua New Guinea’s new LNG project (PNG LNG) coming on stream in 2014, and Gazprom Marketing & Trading, Gazprom Group’s energy commodities trading company, have signed an exclusive Memorandum of Understanding (MOU) in Sydney today to work together on a range of CDM projects in Papua New Guinea.
GM&T and TWL have agreed upon a framework that would allow them move ahead with a number CDM energy-related projects in PNG via the use of a wide range of proven clean green technologies set to bring energy to remote communities, reduce operating costs and improve the environment which is a ‘win-win’ outcome for everybody. GM&T will support the development of CDM projects by providing expertise and finance to reach UN registration of those projects as well as purchase the CERs generated as a result of emissions reductions through the switch to clean fuel.
The main catalyser for the project has been TWL’s nomination as the sole transport and logistics operator for PNG’s LNG facility coming on stream in 2014 to allow gas exports to Asia-Pacific. This has enabled TWL to develop a strategy for switching to natural gas instead of diesel as their primary fuel. TWL’s fuel switching strategy will also enable the company to displace the current usage of diesel with clean fuel LNG for power generation in towns and remote communities in PNG that are currently suffering from low fuel availability and the high cost of diesel.
TWL Managing Director Larry Andagali said: “TWL aspires to be a leading world class company in all aspects of its business operations, including the use of clean fuels, like LNG. As our transport operations increase significantly our consumption of diesel is also increasing. TWL aims to be a pioneer in the worldwide trend toward reducing its carbon footprint via the reduction of its emissions of greenhouse gases by converting its trucking fleet and site power operations to operate on a mixture of LNG and/or diesel. The domestic use of LNG is just as important to the community and country as the sale of LNG to foreign customers. We cannot have a situation where we only export LNG and don’t use it for our own benefit in developing our country, lifting our own living standards, enhancing our energy security, and improving the environment that we live in, and that ultimately the generations to come will inherit from us.”
Sophie Ducoloner, General Manager Asia Carbon, GM&T, said: “GMT is very excited about TWL’s planned fuel switch project to LNG and also about the possibilities that working with an innovative wholly owned PNG company like TWL could bring for other CDM projects in the country. Both Carbon and LNG are strategic products for Gazprom development in Asia and we are proud to be part of this great initiative in PNG.”
TWL’s planned fuel switch project study should be completed by early February 2011, at which time the parties will be looking at an access timetable for the finalization of a gas sales and purchase agreement to initially produce around 50 to 100 tonnes per day of LNG. As a first initiative, TWL plans to install a Salof Mini LNG plant and associated infrastructure closer to the company’s field operations at Hides, which will significantly reduce the amount of fuel TWL must currently haul in from Lae, a trip of over 800km taking more than 3 days one way. The project will not only benefit PNG’s environment and its communities, at the same time it will improve the company’s fuel security.
The MOU signing was witnessed, among others, by PNG’s Minister for Petroleum and Energy, Hon. William Duma LLB LLM MP, Minister Assisting the Prime Minister on Climate Change and LNG Matters, Hon. Francis Potabe, MP, Minister for State Enterprise Hon. Arthur Somare MP, Minister for National Planning and Rural Development, Hon Paul Teinsten MP, Minister for Education, Hon James Marabe and Governor for Southern Highlands Province Hon. Anderson Agiru MP.
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Source: Gazprom Marketing & Trading, December 6, 2010;