Papua New Guinea’s Energy Authority Bill in final stages, petroleum licenses under review, ‘win-win’ agreements for liquefied petroleum gas (LPG) plant, and loan agreement for the Pacific Marine Industrial Zone. Your weekly digest of the latest business news.

Energy Minister Sam Basil has reportedly said that the Department of Energy is committed to getting the Energy Authority Bill passed in Parliament. Once the bill passes, the Department of Energy will drive and coordinate the energy agenda in PNG. According to Basil, ‘the driver will be PNG Power Ltd (PPL). In future, we will see more of the independent power producers spreading their wings when the legislation opens up. Right now, PPL is the key player.’ (The National)

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Petroleum Minister Fabian Pok said during last week’s Petroleum & Energy Summit in Port Moresby that petroleum licenses in PNG are under review. This includes all Petroleum Prospecting Licence (PPL), Petroleum Retention Licence (PRL) and Petroleum Development Licence (PDL). The review aims to stop potential abuses within the licencing process.

‘The abuse that has been common practice in the awarding of licences will not be tolerated anymore. I’ve instructed Petroleum Licensing Board to make sure all process of licensing acquisition are scrutinised where they strictly meet pre-conditions,’ said Pok. (LOOP PNG)

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PNG needs a liquefied petroleum gas (LPG) plant to supply power demand, explained Energy Minister Sam Basil during the Petroleum & Energy Summit. The Minister mentioned that the government will seek ‘win-win’ agreements with the industry to guarantee a secure supply and meet gas demands. (Post Courier). Meanwhile, the Deputy Prime Minister and Treasurer Charles Abel commented that PNG has one of the ‘most lucrative fiscal regimes of resource projects’. (The National)

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Cocoa producers Steven and Elizabeth Saveke, who recently won the Bougainville Chocolate Competition, have travelled from Bougainville to Melbourne, Australia, to showcase their products at the Taste and Tell event, an initiative to promote PNG’s cocoa industry.

‘Cocoa is the major crop of Bougainville and is a key potential export earner for smallholder farmers,’ said Andrew Campbell, CEO at Australian Centre for International Agricultural Research. ‘There are real opportunities to improve its productivity and quality, but there’s no point if you don’t have a market to sell to. Australia is supporting market linkages between cocoa farmers in Bougainville to chocolate makers in Australia and around the world.’ (ACIAR)

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During an update about NiuPower 58 megawatt gas fired power plant outside Port Moresby, NiuPower’s CEO Richard Robinson said that independent power producers should back PNG Power and ‘know their place in the electricity hierarchy in the country’.

‘Independent power producers like ourselves are here to support the delivery of that strategy by providing capital and expertise. We should not be injecting our views in terms of making the policy and making proposals of power stations that don’t make sense within that policy and strategy. (Post Courier)

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The $US168 million loan agreement for the Pacific Marine Industrial Zone (PMIZ) could be signed in late April, when Prime Minister Peter O’Neill and Planning Minister Richard Maru visit China to attend the One Belt, One Road Global Forum. (Post Courier)

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Jessie Mitir, PNG Biomass’ Stakeholder Engagement Manager has said that PNG Biomass is seeking confirmation of PNG Power Ltd and the government to start the construction of a biomass power plant.

PNG Biomass has undergone a tender process and was picked to develop the project; however, the company is waiting for the final investment decision. Mitir reportedly said: ‘We believe that we are close to getting the financial commitments from PNG Power and the Treasury Department. If we do, we will enter construction phase by the middle of this year, and provide first power into the Ramu Grid by mid-2022. (The National)

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The coconut oil producing company Tropical Fronds Oil, in East New Britain, has received an international certification of compliance from Pacific Horticultural and Agricultural Market Access plus Program. The program is supported by the Australian and New Zealand government. (Post Courier)

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During last week’s South Pacific Forum in Jakarta, Papua New Guinea, Fiji and Indonesia reached an agreement to begin negotiations over a ‘preferential trade agreement’. According to Indonesia’s Foreign Minister Retno Marsudi, the planned trade agreement is expected to drive up trade volume and ease barriers in trade and investment. (RNZ)

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Papua New Guinea and Australia have signed the Lombrum Joint Initiative, which will help redevelop facilities at Lombrum naval base in Manus, and increase interoperability between defence forces. It has been reported that PNG’s Defence Secretary, Trevor Meauri, said it would ‘also enhance PNG Defence Force capability to protect PNG’s borders and maritime resources through a broad program of mentoring, tailored training, and infrastructure development.’ (RNZ)

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Three hybrid rubber-tyred gantry cranes (RTGs) were delivered ahead of scheduled to the South Pacific Container Terminal (SPICT) in Lae, PNG’s largest container terminal. (Port Technology)

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PNG’s Business Regulators’ Summit will be held on April 15 and 16 at the Hilton Hotel in Port Moresby, the Investment Promotion Authority (IPA) has announced. The summit’s theme is ‘Harmonising regulations: the value chain and where I fit as a regulator’. The IPA’s Managing Director Clarence Hoot said: ‘This summit is planned as part of a post-Apec domestication process, aimed at enhancing the productive capacities of our domestic regulations to grow business and investments.’ (The National)

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Photograph of the week

Credit: FAO Asia Pacific/Twitter

A Food and Agriculture Organization (FAO) Asia Pacific officer [pictured] helped the community in PNG’s Jiwaka Province learn how to tag pigs for a livestock traceability project using distributed ledger technology (blockchain). The system aims to improve traceability for livestock smallholders by creating digital records of each animal. The records could help farmers earn a better price in the market and allow them to be part of global supply chains.