Father John Glynn on corruption and youth
Not enough teachers to satisfy govt initiative

InterOil runs into big problems over LNG project

INTEROIL’s PROPOSED Gulf LNG project has been shelved by the PNG government on the grounds it deviated from it's original proposal, media reports say.

Papua New Guinea's national executive council reportedly killed the project after a vote last Wednesday.

It said it had found InterOil had ignored government concerns and had publicly promoted one project while building another in the nation's Gulf Province.

The PNG's Petroleum Minister, William Duma, attacked InterOil for proposing a “small scale, fragmented” project to be constructed by companies not recognised as LNG operators.

“Instead of delivering a project that fits this project description, LNG/InterOil has been announcing, presenting and promoting a different project without seeking prior state approval,” The National newspaper quoted Mr Duma as saying.

“The PNG government supports, and will continue to support, LNGL/InterOil in delivering the project contemplated in the agreement, but not a project which deviates from the agreement.”

He said the original agreement, dating back to December 2009, was for a “world-class LNG plant of international scale and quality using internationally-recognised technology,” with a plant size of 7.6 million to 10.6 million tonnes of LNG per annum.

The agreement also called for it to be operated by an internationally-recognised LNG operator.

Source: Bigpond News, 27 September    Spotter: Barbara Short


Feed You can follow this conversation by subscribing to the comment feed for this post.

Joe Wasia

The initial agreement must not be violated by any parties. Breaching of an agreement is a serous crime.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)