Japanese companies keen to invest in PNG petrochemical industry - Solomon Star News

Japanese companies keen to invest in PNG petrochemical industry

16 February 2015

The National -  MOST investors eyeing Papua New Guinea’s newest industry – petrochemical – are from Japan, Petroleum and Energy Minister Nixon Duban says.

Japanese Ambassador to PNG Morio Matsumoto had told The National that apart from SojitzCorporation, more Japanese companies had indicated interest for the industry in PNG as well.

“Apart from Sojitz, there are other big companies like Mitsubishi Corporation, Marubeni and Itochu. They are very keen in investing in that particular sector. They are very big companies in Japan,” Matsumoto previously said.

Sojitz is currently carrying out feasibility study for the proposed petrochemical plant outside Port Moresby.

Duban said several other Japanese companies had approached him, as the minister responsible, and indicated their interest to invest in the new industry.

“Sojitz has already taken up some 20-plus hectares…We’ve got Itochu who has come forward.

“We’ve got a couple of petrochemical companies who have come on board in terms of trying to seek cheaper gas, mostly Japanese petrochemical companies.”

However, Duban said the supply of cheap gas would be a problem for the sector.

“We’ve got Sojitz who is carrying our feasibility study but the issues are stuck with the supply of gas which they are not able to secure,” he said.

“I think once we go into middle of 2015, I’m very sure that we will find a way forward for some of those companies.

“They have a choice, they don’t need to restrict themselves to the park.

“They can go and negotiate 15% with operators of Elk – Antelope, they can have that petrochemical somewhere in Gulf, or Western province.”

- The National