Minister for Petroleum and Energy Sir Moi Avei told the Post-Courier newspaper that the delegation, led by Methanex vice president Harvey Weake, who is also Methanex New Zealand managing director, was in the country last week.

Avei said plans for a feasibility study into a plant were also discussed, with a possible completion date for a study flagged for the end of the year.

“To have an industry leader such as Methanex eyeing seriously an investment in PNG is a huge vote of confidence in the Government’s policies, not only in the mining and petroleum sector, but more widely in providing a stable and attractive investment environment,” Avei told the Post-Courier.

“It’s been hard work getting the gas project to where we are today, but seeing world-class companies showing interest in investing in PNG as they are today makes it all worth it.”

The Methanex delegation also visited the site of the proposed Konebada Petroleum Park.

In May, PNG-focused oil and gas producer Oil Search said discussions with two Japanese companies, Itochu and Mitsubishi Gas Chemical (MGC), regarding development of a world-scale petrochemical plant in Port Moresby that would produce both methanol and dimethyl ether, were at an advanced stage.

The three parties signed an indicative terms agreement in 2004, in which the companies agreed to the commercial principles for the sale of 86 petajoules of gas.

Oil Search said it expected a binding sales agreement to be signed in the second half of this year.

“Oil Search sees the potential petrochemical plant as a cornerstone for in-country development and this visit has been the outworking of Oil Search’s in-country development strategy,” PNG general manager Gerea Aopi said at the time.

The Vancouver-based Methanex, which is listed on the Toronto Stock Exchange, manages more than 20 terminals and storage facilities worldwide.

The company owns a methanol plant in New Zealand capable of producing 530,000 tonnes of methanol per year. Around 230,000t are expected to be produced this year.