The Ok Tedi Mining Limited (Ok Tedi) has signed a non-binding gas supply term sheet with ArranEnergy, a subsidiary of Trans Wonderland Limited (TWL), marking a strategic move towards decarbonising its operations under the company’s Growth 2050 Energy Transition Strategy.
The deal involves purchasing gas from TWL’s Stanley gas fields in Western Province, positioning OK Tedi at the forefront of Papua New Guinea’s emerging domestic liquefied natural gas (LNG) market.
Speaking at the signing ceremony, Ok Tedi’s Manager for Energy Transition, Anton Safronov, said, “This signing is a significant milestone for Ok Tedi and the first of many steps to be taken as we work towards decarbonising our operations per our Growth 2050 Strategy.”
He added, “This event signifies more than just our decarbonisation targets, we also use local products and provision of more employment opportunities for our locals.”
Ok Tedi Managing Director and Chief Executive Officer KEDI ilimbit emphasized the importance of the deal for PNG’s domestic gas market development. “PNG has not really developed the Liquefied National Gas supply in its domestic market so Ok Tedi being 100% PNG owned, is happy to be the first one entering into the same segment with Trans Wonderland and ArranEnergy. We will now generate power and drive trucks from Stanley LNG gas.”
Ilimbit echoed Safronov’s focus on reducing Ok Tedi’s carbon footprint while highlighting the need to de-risk operations. He noted, “Ok Tedi’s supply of imported fuel; especially diesel for its operations and mainly its electricity generation is always dependent on the river levels on the Fly River,” describing the Stanley LNG project as “an alternative option for Ok Tedi to capitalise on transitioning to a different energy source, with reduced carbon footprint and costs.”
Ok Tedi’s thermal generation currently produces 60 megawatts of power daily. Ilimbit also revealed plans for enhancing hydro generation facilities and expanding gas use across its mobile fleet.
The Stanley LNG project supports Ok Tedi’s decarbonisation by transitioning from diesel to locally sourced natural gas, improving operational resilience amid river transport disruptions, and positioning the company as a national leader in energy and emissions efficiency. It stands as one of three key pillars of Ok Tedi’s strategy, alongside hydropower expansion and mining fleet electrification, targeting carbon neutrality by 2050.
TWL Managing Director Larry Andagali expressed optimism about serving PNG’s domestic gas market: “The next 50 years is looking brighter, and this partnership signifies better things to come. We have a vast natural gas resource, but how can we best add value to it for our people after processing?
Ok Tedi, 100% PNG owned, reaffirms its commitment to responsible mining and sustainable legacies for its stakeholders through progressive energy transition initiatives like this.
