Ok Tedi Mining Limited (OTML) has taken a major step in its energy transition strategy, signing a gas supply deal with ArranEnergy this month.
It will purchase liquified natural gas (LNG) from the subsidiary of Trans Wonderland, which operates the Stanley gas fields in Western Province.
The companies participated in a signing ceremony to announce the deal earlier this month.
OTML manager for energy transition Anton Safronov said the deal was the first major step in the company’s energy transition strategy but also contributed to local content ambitions.
“[It is] the first of many steps to be taken as we work towards decarbonising our operations, per our Growth 2050 strategy,” he said.
“[But] this event signifies more than just our decarbonisation targets – we also use local products and provision of more employment opportunities for our locals.”
OTML managing director and chief executive officer Kedi Ilimbit said he was proud to see Ok Tedi become the first major local customer for domestic LNG.
“Ok Tedi, being 100 per cent Papua New Guinea (PNG) owned, is happy to be the first one entering into the same segment with Trans Wonderland and ArranEnergy,” he said. “We will now generate power and drive trucks from Stanley LNG gas,” noting that the mining company was looking for further ways to reduce its dependency on fossil fuels.
OTML’s current thermal generation produces 60 megawatts of power daily for operational consumption.
Trans Wonderland managing director Larry Andagali said the development of domestic markets for LNG was a step in the right direction for the national economy.
“The next 50 years is looking brighter, and this partnership signifies better things to come.,” he said. “We thank Ok Tedi for this partnership and hope that more businesses in the country will follow suit to ensure sustainable usage of our natural resources for an improved lifestyle for all our people in PNG.”
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