Mayur in power JV with Kumul

MAYUR Resources has signed a memorandum of agreement with Kumul Petroleum in a commitment to the development of energy projects using domestic energy sources, being predominantly gas and supported by coal and other renewable energy sources in Papua New Guinea.
Mayur in power JV with Kumul Mayur in power JV with Kumul Mayur in power JV with Kumul Mayur in power JV with Kumul Mayur in power JV with Kumul

Staff Reporter

Mayur says the PNG Energy Generation Solutions (PEGS) joint venture follows extensive collaboration, planning and scenario modelling since early 2018.
 
Mayur says the agreement's  intended  effect  can  now  be  realised  following  the  recent  publicly  announced  gas agreement signed between the PNG government and the Papua LNG project owners, led by Total.
 
"The Kumul-Mayur agreement sets a framework for the co‐ordinated development of Mayur's portfolio of projects in PNG, related to power generation such as its Lae Enviro Energy Park as well as its vertically integrated down‐stream  processing  facilities  for  cement  and  lime  and  other  standalone  energy/power generation  opportunities.
 
"These additional  energy/power  generation  opportunities  that  aim  to replace higher cost, higher polluting imported liquid fuels (such as heavy fuel oil) exist in Madang, Lihir Island and elsewhere. The current and potential future demand in these centres (including Lae) is in the vicinity of several hundred megawatts," Mayur said.
 
 Mayur says the agreement and the supporting Papua LNG project domestic market obligations (DMO) enable Mayur to factor the utilisation of fixed price DMO gas as a fuel source into its EEP power station project in Lae. This gas can be used singularly or in combination with coal, biomass in the same facility supporting the power and co‐generation steam supply along with use of solar. While Lae is located on PNG's east  coast  (away  from  the  country's  gas  production  infrastructure  near  Port  Moresby)  it  is  still  many thousands of nautical miles closer than PNG's export customers in north Asia, such as Japan.
 
Conversely Mayur's Central Cement and Lime (CCL) project is immediately adjacent to the current PNG LNG and the proposed Papua LNG operations, and CCL's energy needs may be serviced via a short connecting gas pipeline.
 
"Negotiations  with  Fortune  500  energy  companies  wishing  to  partner  across  the  development, construction and operations of energy/power related assets are continuing. The PNG Energy Generation Solutions Joint Venture will  continue  the  dialogue  with  these  parties  with  an  endeavour  to  finalise  arrangements  within calendar year 2019."
 
The full announcement may be found at this address: https://bit.ly/2Hh50NO
 

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