Talisman Energy and Horizon Oil have been working on plans to export condensate from the Stanley-2 and Stanley-4 wells in Petroleum Retention Licence 4 and to commercialise the Eval and Ketu discoveries in PRL21.
But the power plant project provides an outlet for some of the gas in the domestic market.
Under the proposal, gas-fired power would be supplied to the giant Ok Tedi mine and possibly to the future Frieda River mine according to The National, which did not reveal the megawatt capacity involved.
Xstrata recently delayed the Frieda River project feasibility study by 11 months to assess using gas-fired power.
A spokesperson for joint venture partner Highlands Pacific previously told PNGIndustryNews.net a gas power plant could be significantly faster and more economical than a hydro power plant (140 megawatts), which could take three to four years to build and install.
This project could also reportedly provide power to up to 50,000 people in Western Province.
Other power projects reportedly approved by the National Executive Council of the government last week included an upgrade of the Ramu hydro scheme and the development of a gas power plant for the Mananda field operated by Oil Search in Southern Highlands province.