Papua New Guinea's energy production
Papua New Guinea's energy production is significantly reliant on fossil fuels, with crude oil and natural gas forming the backbone of its energy sector. The discovery of petroleum and natural gas reserves in the 1990s spurred economic growth, leading to increased oil and gas exports. The country's electricity generation is predominantly powered by fossil fuels, which accounted for approximately 74.8% of total production in 2022. However, Papua New Guinea also possesses substantial renewable energy resources, particularly in hydropower, which constituted about 36% of electricity generation that same year. Despite having considerable geothermal and biomass potential, these renewable resources remain largely untapped, primarily due to their remote locations and a lack of public awareness.
Electricity access has slowly improved; in 2000, only about 10% of the population had electricity, but by 2022, this figure rose to 19%. The government has ambitious plans to increase this access to 70% by 2023 through greater investment in renewable energy. PNG Power serves as the national utility, overseeing the energy sector from production to distribution. Overall, while fossil fuels dominate Papua New Guinea's energy landscape, there is a growing recognition of the importance of diversifying into renewable sources to meet future energy demands and enhance accessibility.
Subject Terms
Papua New Guinea's energy production
Official Name: Independent State of Papua New Guinea.
Summary: Papua New Guinea is highly dependent on fossil fuels for its energy production and consumption. Discoveries of petroleum and natural gas reserves in the 1990s boosted the country’s economy.
Papua New Guinea’s growth of gross domestic product (GDP) is driven mainly by mineral and petroleum mining. The country initiated its oil and gas production in 1991 at Kutubu oil fields. Realizing how important those resources were for the economic growth of the country, the government pushed for increased exports. The institutional body responsible for energy policies and plans is the Energy Division of the Department of Petroleum and Energy (DPE). PNG Power was the national electricity utility, responsible for most of the power sector planning, from production to transmission.
Energy in the country was predominantly used for electricity generation and transportation, and the national energy mix is dominated by fossil fuel sources consisting of crude oil and natural gas, which were responsible for the largest share of the energy production in the country. The country also has significant renewable energy resources, largely unexploited, in the form of geothermal and biomass, as well as well-developed hydropower. Renewable energy sources, mainly in the form of hydropower, formed around 36 percent of total electricity production in 2022.
In 2022, fossil fuels accounted for 74.8 percent of electricity generation. As Papua New Guinea has developed economically, its electricity consumption has rapidly increased, mainly because of a shift in consumption from primarily industrial to both industrial and household use. In the 2000s, estimates were that less than 10 percent of the population had access to electricity; by 2022, that figure had risen to 19 percent. That same year, total electricity consumption was 4.524 billion kilowatt-hours. By increasing the amount of renewable energy, such as wind power, Papua New Guinea leaders have set a goal of increasing electricity access to 70 percent of the population by 2023.
Nonrenewable Energy
Papua New Guinea is heavily dependent on fossil fuels. In 2021, the nation's crude oil reserves were estimated to be 159.656 million barrels. The nation produced about 32,000 barrels a day and consumed 27,000 barrels a day.
Natural gas also played an important role in the country, but mainly in exports to Australia through the pipeline to northern Queensland. The first gas field, the Pandora field, was discovered in 1988, and in 1992 another field was discovered, confirming the presence of more gas reserves. Gas reserves were estimated to be 183.125 billion cubic meters in 2021.
Renewable Energy Resources
Papua New Guinea has a great potential for renewable energy. However, these resources are often located in remote areas, making them difficult to exploit. Moreover, there was little awareness among the population of renewable resources and their importance, and therefore they are not in high demand. The most commonly exploited renewable energy sources in the country was hydropower, which formed 69.3 percent of the renewable electricity generation mix, followed by geothermal energy, at 28.6 percent. Biomass was under-exploited, generating only 2.1 percent to the mix.
The other renewable sources on the island include geothermal energy, which was discovered in 2007 at New Ireland Island and has rapidly developed, reaching 358 gigawatt-hours of installed capacity, or 10.1 percent of total electricity generation.
Until mid-1980, Papua New Guinea was a leader in the region for biomass energy. The country still has dense forests, and its biomass is under-exploited in comparison with other renewable sources. Papua New Guinea is also rich in plant oils, such as palm and coconut oil, which can be used as fuel and have been produced mainly for export, which has offered the greatest economic returns. Biomass is typically used for heating and cooking, but some of it is converted to electricity.
Bibliography
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