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Fourth PNG gas project in pipeline
By Online Editor
4:29 pm GMT+12, 05/06/2014, Papua New Guinea
Papua New Guinea may have its first major gas downstream processing facility, a $US2 billion petrochemical project, if the government approves the feasibility study agreement it is currently discussing.
An agreement for a pre-feasibility study was signed between a Japanese company, Sojitz Corporation, and the government in June last year for a gas chemical production project using natural gas produced in PNG.
Sojitz Corporation is waiting for the green light from the government to allow the feasibility study to kick off at Konebada Petroleum Park.
Petroleum industry advisors told the Post-Courier, that the project will be the first downstream gas processing production facility in PNG, and the fourth largest LNG project after PNG LNG, Inter Oil’s and Total’s project and the Stanley gas condensate project.
These are projects that were negotiated under the leadership of former Petroleum and Energy Minister William Duma.
Prime Minister Peter O’Neill is in Japan this week to welcome the first gas shipment from the PNG LNG project with executives from TepCo, the company that bought the gas.
He also took time to meet with Sojitz Corporation president and chief executive officer Yoji Sato to discuss the project.
The Post-Courier was initially advised earlier this year that the Japanese companies, Sojitz and Itochu, presented separate proposals to the government last year to approve a feasibility study to convert gas into methanol, ammonia and urea fertilizer.
Officials confirmed that Sojitz made a proposal for a gas chemical project in March last year and that the project would have progressed if Duma was still the minister.
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At last year's AGM I asked around and nobody seemed to be familiar with DME...dimethyl ether...a direct substitute for diesel efficiently converted from natural gas with an atmospheric boiling point of around -5F. Much easier stuff to handle than LNG. Here's the relevant link: http://www.aboutdme.org/index.asp?bid=564&efg=1
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15% less project gas available for expansion.
**********
By Online Editor
10:09 am GMT+12, 06/06/2014, Papua New Guinea
The Papua New Guinea will now put the $US2billion petrochemical project as a priority, Prime Minister Peter O’Neill announced Thursday.
O’Neill and his team to Japan this week met with high profile executives of Sojitz Corporation, the company that has proposed to build a gas chemical production project using natural gas produced in the country at Konebada Petroleum Park this year.
“Papua New Guinea has made it very clear to our partners in Japan that we are interested in developing the petrochemical industry,” the Prime Minister said.
“Yes, it might not give us the same revenue as the PNG LNG export but it is important that we provide employment opportunities for our people.
The Petrochemical Industry will employ thousands and thousands of people and this Government will put priority to that and we are now already in agreement with ExxonMobil on the current project and they will supply gas to power our cities and towns electricity – generate power by gas.
“ExxxonMobil and partner are already working together on this too,” he said.
Petroleum Minister Nixon Duban and Hela Governor Anderson Agiru confirmed a proposal on the project was already before the government and said that both parties are now working on the 15 per cent domestic market obligation for the project.
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O'Neill is a smart man. They should do something like this in the US given our abundant supply...
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06-09-2014, 10:16 PM
(This post was last modified: 06-09-2014, 10:21 PM by ArtM72.)
(06-09-2014, 08:51 PM)ebster123 Wrote: O'Neill is a smart man. They should do something like this in the US given our abundant supply...
We certainly appear to be talking a dimethyl ether plant here. If you Google DME and DOE you will see a number of references to USDOE support for DME research into blending diesel and dme going back for over a decade. Little appears to have come out of that work, although the USDOE has also been active in supporting research into DME production from coal.
More interest in DME has been seen in the EU. This 2012 article talks about Volvo's interest in DME as a direct diesel substitue and references a DME plant under construction in Imperial, CA.
http://www.truckinginfo.com/channel/fuel...or-us.aspx
Finally, following the Itochu/PNG announcement last year I asked several IOC executives at the AGM if they knew anything about DME. None did. Total on the other hand certainly does, as can be evidenced in their sponsorship of the International DME association:
http://www.aboutdme.org/aboutdme/files/c..._taupy.pdf
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Japan’s Abe due in PNG in July
Posted by: Zabeena in Pacific News http://fijione.tv/wp-content/themes/tv/i...parate.png); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: initial; display: inline-block; background-position: 0% -506px; background-repeat: no-repeat no-repeat; ">3 days ago 36 Views
 The Papua New Guinea prime minister, Peter O’Neill, has confirmed that the Japanese prime minister, Shinzo Abe, will visit PNG from July the 10th to the 12th.
Mr O’Neill told reporters upon his return from Japan that Mr Abe will visit Port Moresby and other parts of PNG, including Wewak.
His visit will be the first of a Japanese prime minister since 1985 when Yasuhiro Nakasone was in PNG.
Mr O’Neill says this shows the confidence a member of the G7 group has in PNG.
He has also appealed to the media to be positive and stop being negative as the country is moving forward in its major developments.
Mr O’Neill was in Japan to witness the arrival of the first gas shipment from PNG’s 19 billion US dollar LNG project.
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'ebster123' pid='44562' datel Wrote:O'Neill is a smart man. They should do something like this in the US given our abundant supply...
I don't know who your "they" is, but the US petrochemical industry is already huge, and it is already growing, partly because of the abundant low-cost gas.
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'ArtM72' pid='44563' datel Wrote:
'ebster123' pid='44562' datel Wrote:O'Neill is a smart man. They should do something like this in the US given our abundant supply...
We certainly appear to be talking a dimethyl ether plant here. If you Google DME and DOE you will see a number of references to USDOE support for DME research into blending diesel and dme going back for over a decade. Little appears to have come out of that work, although the USDOE has also been active in supporting research into DME production from coal.
More interest in DME has been seen in the EU. This 2012 article talks about Volvo's interest in DME as a direct diesel substitue and references a DME plant under construction in Imperial, CA.
http://www.truckinginfo.com/channel/fuel...or-us.aspx
Finally, following the Itochu/PNG announcement last year I asked several IOC executives at the AGM if they knew anything about DME. None did. Total on the other hand certainly does, as can be evidenced in their sponsorship of the International DME association:
http://www.aboutdme.org/aboutdme/files/c..._taupy.pdf
According to the article above, the plant is intended " to convert gas into methanol, ammonia, and urea fertilizer", not dimethyl ether.
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'Getitrt2' pid='44593' datel Wrote:
'ArtM72' pid='44563' datel Wrote:
'ebster123' pid='44562' datel Wrote:O'Neill is a smart man. They should do something like this in the US given our abundant supply...
We certainly appear to be talking a dimethyl ether plant here. If you Google DME and DOE you will see a number of references to USDOE support for DME research into blending diesel and dme going back for over a decade. Little appears to have come out of that work, although the USDOE has also been active in supporting research into DME production from coal.
More interest in DME has been seen in the EU. This 2012 article talks about Volvo's interest in DME as a direct diesel substitue and references a DME plant under construction in Imperial, CA.
http://www.truckinginfo.com/channel/fuel...or-us.aspx
Finally, following the Itochu/PNG announcement last year I asked several IOC executives at the AGM if they knew anything about DME. None did. Total on the other hand certainly does, as can be evidenced in their sponsorship of the International DME association:
http://www.aboutdme.org/aboutdme/files/c..._taupy.pdf
According to the article above, the plant is intended " to convert gas into methanol, ammonia, and urea fertilizer", not dimethyl ether.
Didn't (still don't) see that. Given the limited (but subject to substantial growth) demand for local nitrogen fertilizer I suspect DME will be the major high value output. The technology is ready to go.
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'Getitrt2' pid='44593' datel Wrote:
'ArtM72' pid='44563' datel Wrote:
'ebster123' pid='44562' datel Wrote:O'Neill is a smart man. They should do something like this in the US given our abundant supply...
We certainly appear to be talking a dimethyl ether plant here. If you Google DME and DOE you will see a number of references to USDOE support for DME research into blending diesel and dme going back for over a decade. Little appears to have come out of that work, although the USDOE has also been active in supporting research into DME production from coal.
More interest in DME has been seen in the EU. This 2012 article talks about Volvo's interest in DME as a direct diesel substitue and references a DME plant under construction in Imperial, CA.
http://www.truckinginfo.com/channel/fuel...or-us.aspx
Finally, following the Itochu/PNG announcement last year I asked several IOC executives at the AGM if they knew anything about DME. None did. Total on the other hand certainly does, as can be evidenced in their sponsorship of the International DME association:
http://www.aboutdme.org/aboutdme/files/c..._taupy.pdf
According to the article above, the plant is intended " to convert gas into methanol, ammonia, and urea fertilizer", not dimethyl ether.
Didn't (still don't) see that. Given the limited (but subject to substantial growth) demand for local nitrogen fertilizer I suspect DME will be the major high value output. The technology is ready to go.
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