Dirio Gas and Power Company Limited has issued a notice to PNG Power Limited to shut down its power station in Port Moresby.
The notice statement by the Chairman of Dirio Gas and Power limited Ambassador Issac Lupari came into effect as of Friday, the 27th of September.
According to the statement, PNG Power has continued to neglect its obligations under the Power Purchase Agreement (PPA) despite numerous attempts by Dirio to engage and elicit a commitment to pay Dirio and it’s landowners.
“The result has now become untenable and PNG Power owes Dirio more than PGK240million” the notice states.
Dirio was founded in 2017 in line with the Papua New Guinea Government’s policy to increase local participation in key industries to economic growth and to ensure that the government’s target of 70% electrification is reached by 2030.
The gas and Power company is entirely owned by the PNG landowners from the LNG affected areas. The chairman also outlined in the notice that since its inception, Dirio has never been a beneficiary to any governmental support such as tax concessions or State guarantees.
The first commencement of the sale of electricity from Dirio to PNG Power Limited under a long term Power Purchase Agreement (PPL) was in November 2021.
Together with its partners, Dirio has operated the Dirio Central Province Power station in accordance with the PPA terms to meet the electricity demands of Port Moresby residents and business houses. However, PNG Power Limited has refused to receive more than 30 megawatts of electricity from Dirio despite having the capacity of 45 megawatts limiting the power generation available to Port Moresby residents.
Dirio in its notice, stated that it does not intend to cause any inconvenience to Port Moresby business and residents but by providing advance notices, Port Moresby users will be prepared for any supply interruptions.
Meanwhile, PNG Power Limited has also issued a planned load shedding electricity schedule for Port Moresby residents and businesses effective as of Friday the 27th of September.
