local png news on t/over, page-2

The question of uncertainty over the oil /gas/ condensate/pipeline is what is undermining the economic future of PNG and is the result of some none too unsubtle political blackmail by the Australian government.

Suffice it is to say that a Korean Singaporean syndicate is looking at an alternative the Australian government has sought continually to dampen and to defeat through use of intermediaries in the world bank and other multi lateral agencies and NGO's citing environmental concerns.

This alternative is the construction of a proper port in either Daru in the Gulf province facing the Gulf of Capenteria or Wewak in Sepik where Sir Michael Somare comes from facing the Sulu sea.

The gas and other hydrocarbons from the southern highlands will either be stroed in the Port area and perhaps also be utilised locally to provide cheap fuel to industry which can be located in PNG except for the absence of cheap gas. The remainder could go into a Petro Chemical plant which has been mooted but defeated for the same reasons. The balance exported.

It is perhaps one of the greatest opportunities for development of PNG and its economy with the opening up of isolated areas and their communities to civilisation, better roads and other infrastructural facilities and better job opportunities.

If the gas is piped to Australia, it will offset the volumes Australia has earmarked for China in a US$25 Billion deal which is in itself a lot of 'Hot Gas'. It will provide opportunities for Australia which is not a bad idea if we are talking business alone. But the time it has taken for this deal not to have gone ahead speaks volumes for the hyperbole attached to the project. it is a political football and a carrot to others.

I would not place the same degree of optimism in OSH as some do. In the end it will only benefit from a carefully choreographed gam of financial musical chais like many a company in PNG.

Cheers