Papua LNG

PNG economy remains weak

This is according to the ANZ’s Economic Update report of PNG.

ANZ projects an impressive GDP of 3.5 percent for this year, however, says no one should be carried away, as this is all coming from a rebound in gas production following the earthquake-induced disruptions in 2018.

Released on December 17th, the ANZ report warns not to be misled by a strong GDP for 2019, stating the economy remains weak.

The report says the strong GDP is due to a rebound in gas production following the 2018 Highlands earthquake.

Papua LNG project halted

The landowners have demanded for a review into the oil and gas agreement signed by the previous government with the Gulf landowners.

The landowners of Baimuru in the Kikori district of Gulf Province, through their umbrella association, Purari Development Association, took out a court order, restraining the development of the Papua LNG Project.

Stability clause for FX stability: PM

Peter O’Neill thanked the Central Bank for their negotiations in this regard, saying this will address the foreign exchange (forex) issues faced by the country.

The Prime Minister said this at the signing of the Papua LNG Project Agreement.

“I wish to thank the Governor for the Central Bank about the negotiation we are having with project partners,  to give visibility so that we do not have foreign currency issues when we are exporting all these  resources out of the country; our currency must be stable.

Papua LNG signing deferred

The signing was supposed to take place on Friday, 5th April.

Prime Minister O'Neill told this newsroom that lawyers are still working on the final terms of the project.

The Papua LNG project, in Gulf Province, is projected to be much bigger than the first LNG project (PNG LNG) in the country.

However, some landowners recently filed a judicial review asking the court to identify the genuine landowners before the agreement is signed.

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Developers to hold state’s equity

This is to ensure the state does not borrow to purchase equity in a project.

“The initial understanding we have with the second LNG and in particular Wafi-Golpu is that our participation in equity will be carried by the developer until the first export of either the gold and copper from Wafi-Golpu or in the second LNG Project, meaning we don’t have to borrow large sums of money that we are unable to repay.

PM anticipates billions from projects

Prime Minister Peter O’Neill said both projects, if approved, will bring in an investment of US$26 billion (K82.6 billion) and will have a significant injection into the economy of our country.

He said this in parliament on January 22nd.

“In total there will be close to US$26 billion, which is close to K100 billion investment in the country and that will have a significant injection into the economy of our country,” said O’Neill.

Basic LNG framework agreed to: PM

Following the signing of the Memorandum of Understanding between the State and Total and its partners, ExxonMobil and Oil Search, the Prime Minister said they are happy with the current framework.

A first for PNG to market gas

PNG’s oil and gas company, Kumul Petroleum Holdings Ltd, as a partner with the project developer TOTAL SA, has come up with an agreement to have KPHL staff undergo training with TOTAL SA in Paris on marketing our gas to buyers.

Announcing two senior employees on secondment with Total SA for 2 years, Kumul Petroleum Managing Director Wapu Sonk said the secondment is part of staff development and also signifies a milestone in assigning KPHL staff to the Total and Kumul Marketing Joint Venture.

Papua LNG plant to remain at Caution Bay

Minister for Petroleum and Energy, Nixon Duban, said the Government respected the decision by Total as the decision wass based on project economics.

Duban made the statement in Parliament this week when asked by Kairuku-Hiri MP, Peter Isoiamo, to clarify on where the plant site would be as the Caution Bay location is situated within his jurisdiction and close to the PNG LNG Site.

Gulf Governor, Havila Kavo, has been vocal about having the plant site in his Province and not in Central Province.

Kavo refuses Papua LNG Pipeline

Kavo said this following the release of Gulf LNG operator, Total SA’s, Environmental Impact Study (EIS) yesterday justifying the company’s reasons to build its LNG Plant Site in Caution Bay in the Central Province.

He said the report ignored the ‘No Pipeline Policy’ affirmed by the Provincial Government and people.