New port in Gulf Province to be built by joint venture


The Gulf Provincal government has set up a 50/50 partnership with the United States-based cargo transportation company, Teras America LLC, to build a port to service Papua New Guinea’s second LNG project and other industries.

Gulf Province, showing potential gas projects, including InterOil's Elk and Antelope fields

Gulf Province, showing potential gas projects, including InterOil’s Elk and Antelope fields

Details of the port project, including its location, have yet to be determined, according to the PNG Regional Manager for Teras America subsidiary PNG Project Services Ltd, Amanda Sprang.

PNG Project Services Ltd's Amanda Sprang

PNG Project Services Ltd’s Amanda Sprang

Sprang told Business Advantage PNG that her company will be providing ‘all the finance and will be the operating partner’.

‘We believe that for [the] long-term partnerships we are participating in, this is the way to proceed.’

Sprang said it makes sense to build a port in the Gulf Province, rather than Lae. It would mean not having to transport goods over the PNG Highlands’ two mountain ranges to reach project sites.

Relationship with LNG projects

Gulf Province Governor Havila Kavo said he expects the Total SA–InterOil Gulf LNG Project, which is in its planning stages, to use the new port.

He also said the Gulf Provincial Government intends to participate ‘meaningfully’ in the Gulf LNG Project, utilising the joint venture with Teras.

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Gulf Province Governor, Havila Kavo

Gulf Province Governor, Havila Kavo

The Governor has put Total and InterOil on notice that he intends a joint venture between the Gulf Provincial Government and Teras America, Gulf Teras Services Ltd, to manage all cargo transport for the LNG Project to the Gulf.

He is unhappy with the current arrangements, where cargo comes to Port Moresby from overseas and is trans-loaded to smaller vessels for delivery to the Gulf:

‘These vessels do not meet IMO [International Maritime Organization] standards, and the Gulf Province will put an end to this kind of operation.’

The intention of Gulf Teras Services Ltd is to bring a modern fleet and best practices to the marine operations in the Gulf Province, he said. Additionally, such consolidation of cargoes will save the Total/InterOil Gulf LNG Project cost and time and will benefit both the developer and the National Government of PNG.

The Gulf LNG Project will also use the proposed Gulf Port, which will be constructed by Gulf Teras Services Ltd.

Paia Inlet proposal replaced

This proposal for the Gulf Port replaces the previously-proposed Paia Inlet Port Development project.

In addition to bringing benefit to the Gulf LNG Project, the port would open up trade and agricultural exports, Sprang said, and bring down business costs throughout PNG.

Sprang said the proposal is currently with the National Executive Council but it has the support of Prime Minister Peter O’Neill and other ministers.

‘This is a new concept because we are not looking for funding from the National Government,’ she said. ‘We will be sourcing and providing financing.’

She said it was not possible to say how much the port would cost until after a feasibility study was carried out, but said the port would be built within four years.

About Teras America

Teras America LLC provides cargo project transportation and was incorporated in 2009. Its headquarters are in the United States, but it has offices in South America, Europe, Africa, Australia, Singapore and Papua New Guinea.

It is a subsidiary of Teras Cargo Transport  Ltd., itself a subsidiary of Ezion Holdings, which is listed on the main board of the Singapore Stock Exchange.

Teras Australia Pty Ltd, another Ezion subsidiary, is currently developing a cargo terminal in northern Australia and participating in Australian oil and gas projects.

This story has been substantially revised since first publication to take advantage of additional information provided to us by the Gulf Provincial Government and Teras America.


  1. alex Willie Yawingo says

    I hope it doesn’t cut through my untouched rainforest along the Vailala river in the mountain area.

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