04-23-2013, 02:00 PM
Still problems in the Highlands because things were not done correctly up front. IOC is getting it done correctly.
The Hela Provincial Administration threatens to shut down LNG Project
THE Hela Provincial Government has petitioned the National Government with a 30-day ultimatum to shut down the billion PNG LNG Project if the State and the developer do not honour commitments under the various LNG agreements..
The Hela Provincial Administration has threatened to take legal action to shut down the LNG Project if the government and the developer do not respond favourably in 30 days. This will greatly affect the first shipment and export of the LNG gas overseas by 2014. The petition was presented the Hela Provincial Government has petitioned the National Government with a 30-day ultimatum to shut down the billion PNG LNG Project if the State and the developer do not honour commitments under the various LNG agreements.
The Hela Provincial Administration has threatened to take legal action to shut down the LNG Project if the government and the developer do not respond favourably in 30 days. This will greatly affect the first shipment and export of the LNG gas overseas by 2014.
The petition was presented to the Minister for Trade, Commerce and Industry, Richard Maru who is currently visiting the Hela province in relation to Angore PDL 8 Business Development Grants (BDGs).
The petition has highlighted issues and failures by the State and the developer to honour their various commitments under the various LNG agreements.
Hela Governor Anderson Agiru presented the petition to Minister Maru.
The petition states that Hela province is the centre of the PNG LNG Project; the province contributes 88 percent of the PNG LNG; it is on the tail end of the supply and service chain; and is faced with unprecedented development challenges in the areas of law and order, infrastructure, commerce and administration.
“Prime Ministers and state Ministers have come and gone… but never had the opportunity to seriously commission a trip to Hela province to meet with us to discuss the development challenges and priorities of my province,” Governor Agiru said.
“It is in this connection that I thank the O’Neill–Dion Government and Minister Maru in particular for coming to the new Hela province to discuss and understand our plight for development.”
Governor Agiru in handing over the petition said: “Under Petroleum Resources Area Economic Corridor (PRAEC – Subsidy Agreement), I am giving 30 days statutory notice for the State and PNG LNG to address their obligations. Failing this, the Hela provincial government shall institute legal proceeding.”
In response, Minister Maru said “the LNG Project is too important for the people of Hela and PNG as a whole and we must all work together to resolve the issues so we can deliver the project on schedule”.
He was also dismayed as to why responsible ministers and state agencies were not present in the meeting despite being invited to accompany the minister on this trip. He was surprised to learn that the State and the Developer have failed miserably to honour their commitments under the respective LNG agreements.
Minister Maru also said he was dismayed that the Cabinet that he is part of in the last eight months has never been fully briefed on all the outstanding issues regarding the PNG LNG Project by relevant State agencies and their Ministers responsible to fully appreciate the extent and circumstances which have now led to the petition and threat of legal action to halt the project.
He said he has informed the Prime Minister of the petition and will present it to the Prime Minister on Thursday and follow up with an urgent submission to Cabinet to deal with the issues raised.