Gas-Fired Power Project in Hela to Deliver Direct Benefits to Local Communities

Prime Minister Hon. James Marape says the installation of gas-fired power generation at the LNG facilities in Hela marks a major shift from resource extraction to direct, long-term community development.

During a site visit on Sunday, the Prime Minister inspected a 2-megawatt gas-fired power plant nearing completion and confirmed it is expected to be operational by the first quarter of 2026, with plans to expand capacity to 5 megawatts by the end of next year.

“This is where the true value of our gas resources is realised — electricity for our people, improved services, and real development in host communities,” Prime Minister Marape said.

He said reliable power supply will support health facilities, businesses, public services and future economic activity in Hela, helping translate resource wealth into tangible social benefits.

“This is more than revenue. This is about uplifting lives and building sustainable communities,” he said.

The Prime Minister said the project aligns with Government policy to ensure Papua New Guinea’s gas resources contribute not only to export earnings, but also to domestic energy security and regional development.

Prime Minister Marape said the initial 2 megawatts of generation capacity will be sufficient to supply Komo, Koroba and Tari towns, including surrounding communities.

He said the additional capacity will then be progressively extended to Margarima, Nipa and Lake Kopiago, before being pushed further west to Kandep and Mendi, reaching communities that have remained without reliable electricity since Independence.“These are areas that have never been connected to the national power grid since Independence in 1975,” the Prime Minister said.

“The plan is for the expanded capacity to service Lake Kopiago township, Nipa town and Margarima, while also pushing power further west to Kandep and

Mendi. Reliable electricity will support schools, health facilities, townships and local businesses, delivering constant and low-cost power for the first time.”

Prime Minister Marape said improved electricity access will also deliver direct benefits to women and girls, including safer communities through better lighting, improved maternal and child health services, and stronger learning environments for young women in schools.

He further encouraged landowner companies, including Trans Wonderland, to leverage electricity access to expand into agriculture, storage, processing and light manufacturing, noting that increased participation of women in agribusiness and downstream processing will be actively promoted.

“This is how we turn resources into opportunity — empowering our people, supporting women’s participation in the economy, and creating long-term livelihoods beyond the life of the gas project,” Prime Minister Marape said.

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