PNG LNG Project Generates K16.5 Billion for the State: Setting the Stage for Future Growth

By: PNG Business News February 01, 2023

Photo credit: Santos

The PNG LNG project has generated K16.5 billion for the state over eight years of production (2014-2022). This includes K7.5 billion to Kumul from the state's 19.4% equity, K1.3 billion paid to the Mineral Resources Development Corporation, K0.8 billion in royalty payments, K0.7 billion in development levy payments, and K6.2 billion in tax payments.

David Manau, Secretary for the Department of Petroleum, stated: "The PNG LNG project remains to date one of the biggest capital-intensive investment projects ever undertaken in the history of the country at the capital investment cost of US$17.7 billion (K62.4 billion), injecting millions of foreign currency into the local economy at the time of construction."

Manau added: “I am happy to say that the future of the petroleum industry looks very promising with the government of Papua New Guinea signing the US$13 billion Papua LNG Gas agreement in April 2019 to develop the Elk and Antelope gas fields in the Gulf Province of PNG.“

“The signing of the two gas agreements defined the fiscal framework and paved the way for the commercial development of the two mega projects in the country after the successful delivery of the PNG LNG project.“

Regarding the impact of these projects, Manau said: “The development of the two mega projects will certainly put PNG on the world map as the major regional LNG player, boosting PNG’s GDP, creating more job opportunities, increasing government revenue and injecting more foreign currency into the local economy in the years to come, while further elevating the country as a friendly foreign investment destination and attracting more interest in the industry.“

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