March 26, 2018

Domestic Market Obligation To Be Compulsory

Domestic Market Obligation (DMO) in any petroleum project in the country will be compulsory and will be non-negotiable, the recent Petroleum and Energy Summit was told.
Minister for Communication, information and energy Sam Basil said he will work closely with the Minister and department of Petroleum to make sure that DMO is factored in every project agreement which will be included in the white paper policy.

Basil told summit participants, including LNG buyers, possible LNG Investors and the stakeholders that the Government is serious and will make DMO is factored to use the gas for power in the country.

Petroleum Minister Dr Fabian Pok also stress that although there was no provision for DMO in the PNG LNG Project, any other project that comes on stream will make sure there is a percent gas reserve for the domestic gas market.

He said the domestic market LNG will be used for power to supply the energy needs in the country and for other uses such as petrochemical industry.

Dr Pok said industrialisation can only take place when there is constant and sufficient energy supply.

Kumul Petroleum Holding Limited managing director Wapu Sonk KPHL supports the Government’s nation building policies to power 70 per cent of household in the country as captured in the Vision 2050.

He said it has a role in the domestic gas market through DMO by making sure some gas is made available domestically.

He added that entering into an third party pipeline access, to provide reasonable access for third parties to transport gas from stranded LNG fields to meet the local market.

He said the supply of domestic gas has an important role to play in meeting the government policies and for industrial development in the long term sustainable development of the country that will create direct and indirect jobs and open up other opportunities.

Mr Sonk said through the DMO, it would also promote small scale distribution of gas to industrial users and for fuel for electricity besides LNG powered electricity. press Release

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