Local companies fear missing out on LNG project

By PATRICK TALU
LOCAL businesses and landowner companies (lancos) are concerned they are most likely to miss out on opportunities to participate in the PNG liquefied natural gas (LNG) as sub-contractors.Several landowner companies and local business representatives said the stringent criteria used by the engineering procurement construction (ECP) contractors for various phases of the LNG projects would put them on the losing end.The representatives raised their concerns during a workshop conducted by LNG Enterprise Centre to facilitate communication between national suppliers, contractors and subcontractors for the Esso Highlands operated LNG project in Port Moresby.Philo Lala, a representative from a landowner company along pipeline areas from Kairuku where the proposed LNG pipeline would run said: “Stringent criteria that the ECP contractors have will make us losers because we do not have the financial capacity especially for lancos as required.”Among those criteria, financial and capacity and track record of successful management and locally registered companies are the main factors that would determine the awarding of contracts.Ms Lala said: “Some of the lancos have been just registered in order to participate in the LNG project and how does ECP expected us to have the full financial capacity?“We have financial arrangements with lenders in place as well as partnership with existing businesses hoping that we would be awarded sub-contracts.She stressed that if such criteria were used, she feared they might be overlooked for contracts they should be have qualified for.