Papua New Guinea has achieved a landmark financial milestone with the PNG LNG Project fully retiring its bank-financed debt six months ahead of schedule, Prime Minister James Marape announced during a site visit to the LNG facilities on 28 December 2025. The repayment marks a major achievement in the country’s economic history and reinforces PNG’s credibility as a destination for large-scale international investment.
The project’s total bank obligations of around US$16 billion — comprising US$14 billion in construction costs and US$2 billion in interest — have now been fully repaid.
“This complex project, which involved five provinces and more than 60,000 landowners, delivered first gas on time, operated consistently for more than a decade, and has now officially retired its total bank-financed debt earlier than scheduled,” Prime Minister Marape said. “That is a world-class achievement by any measure, particularly for a developing economy.”
Marape paid tribute to the late Grand Chief Michael Somare, under whose leadership the project was conceived, negotiated, and advanced to Final Investment Decision in December 2009. He highlighted the political will, policy certainty, and national consensus established during that period, which enabled project agreements — including critical landowner agreements in PDL1, PDL7, and PDL8 — to be executed, allowing construction to begin in 2010.
“From concept to construction, to first gas in 2014, and then consistent production through to 2025, PNG LNG has delivered reliably for the country,” Marape said. He emphasised the project’s resilience, noting that it has continued to operate successfully despite natural challenges and human pressures in and around the project areas.
The Prime Minister noted that the project was financed during the 2008 global financial crisis, with a consortium of 19 international banks from Europe, Asia, North America, and Australasia raising US$14 billion at a time when global capital was scarce. He underscored the unprecedented scale of the financing relative to PNG’s economy at the time, estimated at K26–K30 billion.
“With all bank debt now retired, PNG LNG today stands as a fully unencumbered national asset,” Marape said. “It is a free-standing, world-class asset for the country. This fundamentally strengthens Papua New Guinea’s economic position and our standing with international investors.”
The project has already generated more than K33 billion in economic benefits, including revenues, royalties, equity returns, employment, business opportunities, and foreign exchange inflows. Prime Minister Marape acknowledged the leadership of former officials, including Michael Somare, the late Governor Anderson Agiru, and ministers Arthur Somare, William Duma, and Patrick Pruaitch, noting that collective commitment was key to delivering the project.
“PNG LNG remains a monumental and economically transformational project for Papua New Guinea,” he said. “It shows the world that PNG can deliver projects of global scale, withstand challenges, honour its commitments, and succeed.”
The Prime Minister also reaffirmed the Government’s commitment to retire all remaining State obligations under the PNG LNG Agreement by the first half of 2026, ensuring the project continues to provide lasting benefits to the nation and its landowners.
