Gas to LNG ====> Done at PNG LNG; ongoing at Papua LNG
There are numerous other ways to monetize gas. PETRONAS does many of them very successfully in Malaysia including Methanol and Ammonia/Urea production. Then futher monetize the methanol into olefins (building blocks for plastics) and other chemicals.
Attached is a brief summary of how this is done. Maybe it'll be good bedtime reading if you suffer from insomnia
Kumul is taking the first concrete steps to move into those other areas. Bravo.
Hopefully IOC is making the deals to sell gas to Kumul/Sojitz and be a JV Partner.
http://www.thenational.com.pg/?q=node/96394
Kumul Enters into Agreement
Source: The National, Friday October 16th, 2015
THE Kumul Petroleum Holdings Limited has entered into an agreement with Japanese petrochemical company Sojitz Corporation to evaluate the potential of developing a methanol production facility in the country.
Kumul Petroleum managing director Wapu Sonk said during the signing of the shareholder agreement in Tokyo on Wednesday the companies agreed to establish a special-purpose company to be called Papua New Guinea Methanol Industry Limited. Its purpose is to undertake a study on the feasibility of the project and the conduct of the initial business activities.
Sonk said: “Sojitz and Kumul Petroleum have entered into this shareholders agreement to govern the conduct of the initial business activities on behalf of their parent companies. “We have agreed to now finalise the feasibility studies, start negotiation for gas availability and pricing, financing, and start the engineering work for the plant”.
Sonk said the two companies entered into a memorandum of understanding last April.
