Oil-area MP calls for refinery
Copyright 2000 Post-Courier (PNG)
December 18, 2000
NATIONAL Gas Corporation chairman Alfred Kaiabe has called for the establishment of an oil refinery in the Moran area or on the coast of PNG.
Papua New Guinea could then produce end products within the country, like kerosene, petrol, diesel, tar and fertilisers.
“The result is that value is added in the process. There will be infrastructure development, technology and skills transfer, creation of jobs and revenue for government with the increase of foreign exchange,” he said.
Ultimately the kina would be strengthened in the process.
He said that in order to achieve this, a cost benefit analysis or feasibility study would need to be done to establish whether an oil refinery was feasible.
“It should be made a pre-condition to the grant of licence that a costs and benefit analysis be done,” he said.
The Komo-Magarima MP, in whose electorate the Moran oil well is situated, said the setting up of the oil refinery would set the process in motion for downstream processing.
“We will be able to bring in revenue from overseas as well as create employment and have technology transfers,” he said.
“I want finished products like tar for sealing roads, kerosene, diesel and other lubricants to be produced in country.”
Mr Kaiabe said the venture for the establishment of an oil refinery should also be open to include participation from landowners, provincial governments.