IEEJ:August 2015

TOPIC:PAPUA NEW GUINEACOUNTRY PRESENTATIONGROUP & REGION-FOCUSED TRAINING HOSTEDBY JICA 21 June- 11 July 2015, Tokyo, JAPAN.
Presented by Kepsey Puiye
Assistant Director- Petroleum Economics- Department of Petroleum & Energy, PNG.

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CONTENT:
1. General Information- PNG
2. Current Energy Policy& Measures
3. Energy Demand & Supply Status
4. Outlook of Energy Supply& Demand
5. Major Challenges
6. Conclusion
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1. GENERAL INFORMATION Located north of Australia & 6°south of equator Political Independence in 1975
 Mining & Petroleum sectors
contribute over 70% country’s
export earnings
PNG joined the exclusive club of
LNG Producers in May 2014.
GDP Growth rate at 10% last 3yearsIncome per capita: US$3,000.
800 Tribes & Languages
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JAPANPNG

Australia

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GENERAL INFORMATION cont..
PNG LNG ProjectWorld-Class ProjectWorld-class Operator
US$20 Billion CapexFoundation Gas Infrastructure
May 2014- First LNG CargoProject provides solid platform foreconomic growth.
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World ClassInfrastructuredeveloped by PNG
LNG Project

6/07/201562. CURRENT ENERGYPOLICY No clear Policy in the past
 Draft National Energy Policy in placenow Key features of new Policy are:o Promote PNG’s development
aspiration & energy securityo Coordinated and sustainable
developmento Making PNG industries and exports
internationally competitiveo Increased electricity accessibility toentire nation and that 70% ofPopulation to Access Electricity by
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3. Energy Demand &Supply Status

 Current Installed Capacity is 580MW
52% Regulated & 48%
unregulated Demand Growth from 2010-2015

was12%.
 Annual demand growth for period
was 6%
 Demand projected to reach 36% by2020 based on 2015 demand
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Demand & Supply…cont’dAnnualGeneration(MWhr)

Annual Peak
Demand MW

2000

796,301.18

126

2001

769,955.50

124

-3%

2002

780,003.38

126

1%

2003

770,619.78

122

-1%

2004

772,125.40

1250%

2005

778,800.69

123

1%

2006

784,776.58

124

1%

2007

819,492.75

1304%

2008

851,453.22

1404%

2009

897,966.34

157

5%

2010

964,541.14

160

7%

2011

1,017,656.41

162

6%

2012

1,079,981.84

1786%

2013

1,209,435.41

216

12%

2014

1,226,721.53

224

1%

Year% AnnualGrowth

Generation Composition –2014 in regulated market
Hydro

699,256

Thermal305,048

IPP

222,418

IPP
18%
Thermal25%

Hydro57%

Source: PNG Power Limited

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4. Demand & Supply
OutlookDemand growth expected todouble Strong economic growthDemand growth from Mining,Industries and Commercial
Sectors.
Natural gas new but strong player
in Power Generation in yearsahead.
Potential Growth in IPP sector
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5. MAJOR CHALLENGES Slowness in Energy Policy Development
 Cumbersome bureaucratic process

Political Views Funding Job Knowledge Investment in new PowerInfrastructure High Cost versus High Price Unit cost of power production to be addressed Price for feed gas for Power Generation needs
policy intervention
 Improving Living Standards of Ordinary People byproviding energy that is affordable, accessible andreliable.
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6. CONCLUSION
 Government addressing issues of thesector – policy development

 PNG one of the rapidly growing

economies in the region
 Negotiating Deals requires
Appropriate Skills & Job Knowledge
 Power Demand projected to growsignificantly over the next decadeand beyond
 PNG offers Great Opportunity forInvestment
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Planning Vital
Having a precise Plan as to how todevelop a National Energy Policy issignificantly important.

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Thank you!!!

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Contact : report@tky.ieej.or.jp

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