PNG: Prime Minister explores gas exports to Shanghai
The National, June 4
PRIME MINISTER Sir Mekere Morauta told the Shanghai Government that he would have further contact with officials on the possibility of exporting gas to the city, one of China's premier ports and a leading industrial and commercial centre.
In a statement yesterday, the Prime Minister's media unit said Sir Mekere had raised the potential of gas exports during a meeting with the mayor of Shanghai, Xu Kuangdi.
Mr Xu said Shanghai, which is going through a period of phenomenal economic growth, relied on coal-fire power stations for its electricity.
"Shanghai is considering restructuring its system and at present about 75 per cent of the city's power is supplied by coal-fired generators.
"This causes serious environmental pollution and the coal used is not as efficient as gas as an energy source.
"The government is thinking of using natural gas and LPG to replace coal," Mr Xu said.
He further said that since Papua New Guinea is richly endowed with gas, there is a possibility for PNG and Shanghai to cooperate in this regard.
Sir Mekere told Mayor Xu that PNG was trying to develop its gas resources though a pipeline to Queensland and when it was developed, PNG would still have surplus gas.
"My Government is committed to creating domestic growth through trade and investment and it is obvious that our two economies are complementary.
"The demand created by the rapid pace of development that Shanghai is experiencing means that PNG would be able to exploit its surplus gas reserves and Shanghai would have a cheap, efficient and environmentally friendly source of energy.
"I will certainly initiate further discussions with the Government of Shanghai on this matter," Sir Mekere said.
The potential for gas exports to China was also evident during an earlier tour of Fuzhou, the capital of Fujian province north of Shanghai.
The Governor of the Fujian province, Xi Jinping, who hosted a dinner in Sir Mekere's honour, said there was undoubtedly room for greatly increased trade between PNG and China for a substantial boost in Chinese investment.
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