Port Moresby To Receive Cheaper Electricity From ExxonMobil

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PNG Power company agrees to power purchase agreement

PORT MORESBY, Papua New Guinea (PNG Post-Courier, April 1, 2015) – The Prime Minister, Peter O’Neill, has welcomed the signing of Electricity Sale Agreement between ExxonMobil and PNG Power Limited (PPL) today that will deliver cheaper power to Port Moresby and increase supply.

Witnessed by the Prime Minister, the agree enable PNG Power will buy electricity for 25t/kwhr from ExxonMobil which is half of the current cost of diesel powered generation at 50t/kwhr.

"The agreement signed today between ExxonMobil and PNG Power will provide for a 50 per cent saving in the feed-in cost of power generation," PM O’Neill said.

"This will deliver a 35 million Kina saving for the period of July to December this year."

The Prime Minister said the additional supply will cover existing demand in Port Moresby, with further gas to be made available for power generation by the end of the year.

"Families and businesses in Port Moresby are about to receive a substantial increase in the availability of electricity following the signing of the Electricity Sale Agreement between ExxonMobil and PNG Power.

"Reliable and affordable electricity is essential for the ongoing improvement of lives, families and communities in our nation.

"The agreement that was signed today will ensure that our current energy demand in Port Moresby is met. Demand has around 150 megawatts each day but only 130 megawatts has been able to be generated.

"This shortfall had led to load-shedding and blackouts, and while there will be pressure on the grid at peak times, the problems of the past are less of a concern.

"The posts to carry the wires to the PNG-LNG facility are currently being fabricated and pole locations being prepared to ensure electricity can be wired into the grid by early June.

"With this new capacity our local businesses should not be interrupted by lack of power. Very importantly, increasing the electricity supply will improve lives.

"School children can do their homework after dark, families can plan dinners without fear of power interruption and the risk of fires from candles and lamps will be reduced."

The Prime Minister said the increased supply will be in place before the Pacific Games in July, with further gas being made available for the generation of an additional 50 megawatts of electricity for Port Moresby by the end of 2015 with associated power generation infrastructure being established in 2016.

"The Pacific Games in July will place additional pressure on the Port Moresby energy grid and we will have the capacity to meet this demand.

"Energy security is of vital importance and we are taking steps to ensure that as demand grows in the coming years, cities and rural areas around the nation will be able to meet our energy needs."

The Prime Minister thanked ExxonMobil for its ongoing commitment to working with the National Government.

"When the public and private sectors work together, drawing on our individual strengths, benefits are shared between stakeholders. In this case the people and businesses of Port Moresby will obtain a very good.

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