PNG's Papua LNG Project Celebrates Decade of Economic Impact
The Papua LNG project, initiated in 2014, marks a significant integrated development that encompasses gas production and processing facilities across the Southern Highlands, Hela, Western, Gulf, and Central provinces. This expansive project has been a cornerstone of Papua New Guinea's energy sector.
PNG LNG exports are a major achievement, supplying gas to four principal customers in the Asia region. This makes the project a landmark in the country’s industrial landscape and highlights its importance on the global stage.
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| PNG's Papua LNG Project Celebrates Decade of Economic Impact |
On Saturday, July 20th, Prime Minister James Marape commemorated the 10th anniversary of the PNG LNG Project, lauding its "transformational" impact. Since the first gas export in 2014, the project has generated K26.3 billion in economic benefits for Papua New Guinea, according to the Prime Minister.
Prime Minister Marape expressed his gratitude to ExxonMobil, the project developer, for their enduring commitment to PNG since they began work on the project in 2008. He also extended his appreciation to all joint venture partners, which include Kumul Petroleum Holdings Ltd (KPHL), Santos Ltd, JX Nippon Oil & Gas Exploration Company, and Mineral Resources Development Company.
“The PNG LNG Project is a transformational project. The National Alliance Government of the late former Prime Minister, Sir Michael Somare, must be commended for having the foresight in 2008 to start this project,” Prime Minister Marape stated, recognizing the project's foundational leadership.
The Prime Minister highlighted the economic gains accrued over the past decade. The project has brought in K26.3 billion, encompassing K1.3 billion for landowner royalties, K1.26 billion in development levies, 2 percent equity for landowners, and K1.9 billion distributed to the Mineral Resources Development Company. Additionally, K9.6 billion has gone to Kumul Petroleum Holdings for their 16.5 percent equity, along with a total tax contribution of K12 billion.
Prime Minister Marape emphasized the importance of these contributions, which have significantly bolstered the nation’s economy. He underscored the direct benefits to landowners and the equitable distribution of wealth among stakeholders.
Reflecting on the project's inception, Marape acknowledged the initial skepticism and criticism faced by the project in 2008. “There were many critics and skeptics when the project started, who have now been proven wrong,” he remarked, highlighting the project's success in overcoming early doubts.
As the Papua LNG project continues to evolve, its impact on the nation's economic landscape remains profound. The anniversary celebration serves not only as a milestone but also as a reminder of the project's enduring legacy and future potential.
With ongoing commitment from the government and stakeholders, the PNG LNG Project stands as a testament to the transformative power of strategic industrial development in Papua New Guinea.
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