PNG economy boosted as LNG project retires bank loans early

Papua New Guinea’s flagship LNG project has fully repaid its bank loans ahead of schedule, a development Prime Minister James Marape says strengthens the country’s economic position and investor confidence.

Addressing stakeholders during a site visit on Sunday, the Prime Minister said the milestone reflects years of disciplined project management, steady operations and long-term confidence from international financiers.

 PNG economy boosted as LNG project retires bank loans early

He said the project was developed at a cost of about US$14 billion, with interest bringing total bank exposure to roughly US$16 billion, all of which has now been settled earlier than planned.

Mr Marape said PNG LNG brought together five provinces and tens of thousands of landowners, achieved first gas on schedule, and has continued production for more than a decade despite operational and environmental challenges.

He acknowledged the role played by the late Grand Chief Sir Michael Somare, saying the project was conceived, negotiated and advanced during his time in office when strong political leadership and policy certainty helped drive it forward.

The Prime Minister recalled that the final investment decision in December 2009 followed extensive negotiations and agreements in key licence areas, including PDL1, PDL7 and PDL8, and said landowner unity at the time helped give investors confidence to proceed.

Highlighting the project’s wider impact, Mr Marape said PNG LNG has generated more than K33 billion in benefits through revenues, royalties, equity returns, jobs and foreign exchange, adding: “Today, PNG LNG stands as a debt-free asset and a clear message that Papua New Guinea can deliver, endure challenges and succeed on the global stage.”