Papua New Guinea’s state oil company NPCP Holdings has signed a shareholder’s agreement with Japanese company Sojitz Corp. to develop a methanol manufacturing industry in Papua New Guinea.
The joint venture wants to capitalize on Papua New Ginea’s vast natural gas reserves as well as the country’s strategic location to capture Asian markets. The anticipated final investment decision for the project is 2017.
Sojitz already owns 85% of the Asian methanol market and has been managing production at Indonesia’s PT Kaltim Methanol Indutri for decades.
The deal is being called a willingness to further economic ties by the prime ministers of Papua New Guinea and Japan.
For Papua New Guinea the agreement fits the government’s plans to add value to the country’s LNG industry. A fertilizer production scheme was discussed during a recent prime ministerial trip to India.