Owned by 11 incorporated land groups and the provincial governments of Hela and Gulf, Dirio Gas & Power will be the latest investment by the company in the power generation business.
The 66MW gas-fired power plant will be built adjacent to the Exxon Mobil Hides gas conditioning plant from where it will receive all gas supplies.
The power station will be equipped with four 16.5MW Solar Turbines Titan 130 modular power plant sets in open-cycle configuration to reach the necessary 66MW total.
Electricity generated from the power plant will be supplied via an interconnect to the Ramu Grid, which is currently being extended further into the Highlands.
The ground-breaking ceremony for the power plant is planned for the third quarter of this year and is expected to be completed in 2024.
Once completed, the power plant will supply electricity to the Hela region, which often suffers from rolling blackouts.
Twenty20 has also agreed to provide operations and maintenance (O&M) services for the new power generation facility.
The 20-year O&M services contract will begin from the date of completion of the construction and commissioning works.
Additionally, Twenty20 Energy plans to acquire a stake in the power plant by investing 20% of the required capital for the construction of the project alongside Dirio.
Twenty20 Energy CEO Geoff Lawrence said: “Working together with PNG government officials and local residents, we’ve been able to make great strides in transitioning regions of the country to cleaner, more reliable power supplies.
“Creating the necessary infrastructure to a remote and geographically challenging area like Hela required a number of innovative approaches that will ultimately improve the economy and lives of those in the region.”