Gas Sales Drive China Trade In PNG’s Favour
While China still remains PNG’s third largest trading partner, its balance of trade clearly outweighs its export to the country largely due to PNG’s LNG gas exports.
With the total trade volume between both countries currently sitting at US$2.3 billion, just over 70 per cent of that volume (US$1.63 billion) comes in the form of PNG exports to China.
Charge d’Affairs of the Embassy of Papua New Guinea to China Vincent Sumale revealed the figures last week during PNG’s national day celebrations held in Beijing’s Yanqing city district. “China has made PNG its largest trading partner in the South Pacific region.
While China is PNG’s third largest trading partner after Japan and Australia,” he said. “The total trade volume between the two countries had reached US$2.3 billion with China’s exports to PNG totalling about US$670 million while its imports from PNG reached US$1.63 billion with the trade balance in our favour.
“The increase in trade is due to China being one of the two major buyers of PNG’s liquefied natural gas, buying about US$1 billion a year.” Mr Sumale said as of late in the country’s trade and investment with Chinese businesses include state owned enterprises that have continued confidence and investment confidence in the PNG economy.
“This is particularly in mining infrastructure developments, energy, and in many other key resource sectors such as agriculture, fisheries, tourism, energy, construction and financial services. “PNG will continue to welcome Chinese investment and businesses to foster closer relations and cooperation between the two countries,” he said. “Our country is blessed with many resources but lacks the knowledge skills and capital.
We acknowledge the contribution of China in developing these resources through their investments, providing opportunities for our students to study in China and assisting our government in project financing in terms favourable to both countries.”
China’s direct investment to PNG reached about UD$1.9 billion making the country the largest investment destination among all Pacific Island countries. “Today there are more than 40 large Chinese companies operating in PNG, creating more than 5400 jobs for the local people and contributing to our social and economic growth,” he said.
As China continues its demand for energy and its green push agenda, it is expected its hunger will push further as it is tipped to takeover Japan, who currently sits atop as the world’s and PNG’s largest importer of liquefied natural gas.
Continue reading at https://postcourier.com.pg/gas-sales-drive-china-trade-in-pngs-favour/ | Post Courier