OPERATIONS

Construction of PNG's first refinery swings into full gear

The construction of Papua New Guinea's first oil refinery is now swinging into full gear with the first major shipment of steel arriving in Port Moresby.

The refinery's operator, InterOil, said the steel is being transferred to site where the refinery is being constructed by Clough Engineering.

The consignment consists of 429 metric tons of steel, which will be used as 'piling' for the marine jetty export/import facility, also under construction. The jetty is being designed to handle the import of crude supplies and export of refined products.

"The steel consignment is the first of many major consignments to arrive and is to be used in the construction and completion of the tanker berthing facility and marine utilities," InterOil said. "This facility will also be used for unloading refinery equipment from Houston, where it has been undergoing refurbishment to 'condition as new' specifications and is expected to be shipped in the coming weeks."

PNG-InterOil said the refinery is being constructed across the harbour from Port Moresby and when completed will process 32,500 barrels per day of crude oil. The fuel products will then be sold to both the domestic and export markets. BP Singapore is the exclusive agent for all crude oil supply to the refinery.

InterOil is also currently the second largest holder of exploration acreage in Papua New Guinea.

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