Ok Tedi Mining Limited (Ok Tedi) is pleased to announce the signing of a non-binding gas supply term sheet with ArranEnergy, a subsidiary of Trans Wonderland Limited (TWL), to purchase gas from its Stanley gas fields in the Western Province.

This is a major step towards the company’s plans to achieve its Growth 2050 Energy Transition Strategy to decarbonise its operation.

Speaking at the signing ceremony, Ok Tedi Manager 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.”

“This event signifies more than just our decarbonisation targets, we also use local products and provision of more employment opportunities for our locals,” Mr Safronov said.

Ok Tedi Managing Director and Chief Executive Officer Kedi Ilimbit said: “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.”

Mr Ilimbit reiterated Mr Safronov’s sentiments on Ok Tedi’s carbon footprint reduction while highlighting the need to derisk the business in future.

He said 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, adding that Stanley LNG project is now an alternative option for Ok Tedi to capitalise on transitioning to a different energy source, with reduced carbon footprint and costs.

Ok Tedi’s current thermal generation produces 60 Megawatts of power for daily operational consumption.

Mr Ilimbit also said that plans are in place for further enhancements to hydro generation facilities and the use of gas on the Company’s mobile fleet.

The Stanley LNG project will be instrumental in decarbonising Ok Tedi’s operations and supporting a more resilient, sustainable future for the company and its stakeholders.

Key benefits of the Stanley LNG initiative include:

• Supporting Ok Tedi’s decarbonisation journey by enabling a transition from diesel to locally sourced natural gas, in line with Papua New Guinea’s climate ambitions.
• Improving operational resilience by reducing reliance on diesel, especially during periods when river transport is disrupted, and ensuring a stable, local energy supply.
• Positioning Ok Tedi as an industry leader in energy and emissions efficiency, with performance already ahead of peer mines in the country.
• Serving as one of the three key pillars of Ok Tedi’s decarbonization strategy, alongside hydropower expansion and electrification of mining fleets, as we work toward achieving our long-term goal of carbon neutrality by 2050.

TWL Managing Director, Larry Andagali was excited about the prospect of selling processed gas in PNG as opposed to prior focus on exporting offshore.

Mr Andagali said: “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? Our answer came in supplying the domestic gas users’ market.

“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,” he said.

Ok Tedi is 100% PNG owned and is committed to being a responsible miner while operating with excellence to deliver sustainable legacies for its stakeholders.