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‘PNG Energy Generation Solution’ MOA Signed

HIGHLIGHTS:

• MOA  signed  between  Kumul  Petroleum  Holdings  Limited  (Kumul)  and Mayur Power Generation PNG Limited (Mayur) in the establishment of a 50/50 joint venture for the development of PNG Energy Generation Solutions (PEGS)
• Joint Venture is to pool intellectual property, energy fuel supplies (coal and gas) with a bias towards utilizing ‘domestic gas’ energy solutions for vertically integrated downstream facilities and other energy generation opportunities
• MOA  deploys  a  competitive  and  commercial  development  and  supply framework using Kumul’s own gas sources and the provision of domestic market obligation (DMO) gas via the agreement recently signed by the PNG Governmentfor the Papua LNG Project
• Enables pathway for domestic gas to be provided to Mayur’s Lae Enviro Energy Park (EEP) for an initial 50MW and underpinning a future expansion up to 200MW
• Provides  a  tangible  commercial  framework  to  utilize  gas  and  coal  in  the development of Mayur’s portfolio of projects in PNG with a focus on industrial minerals and other coastally located power generation projects
• Catalyst to  setting up  regionally competitive down-stream value add mineral processing facilities in PNG i.e. cement & quicklime
• Solidifies  ‘fixed  price’  energy  sources  that  PNG  possesses  (coal  and  gas), providing protection for domestic power generation costs against exposure to international energy input price rises
• Promotes the continued engagement and negotiation of the Joint Venture with various Fortune 500 Energy Companies to support PEGS
• Provides PNG with  a  pathway  to a low-cost  diversified  energy fuel  mix, replacement of expensive high polluting heavy fuels and diesel imports, and improvement of foreign cash reserves