Prime Minister Peter O’Neill made the announcement during day one of the 3rd Petroleum and Energy Summit in Port Moresby, which will end on Thursday.
The signing of the Project agreement paves way for Front End Engineering Design (FEED) and eventual construction.
The announcement by the Prime Minister follows the signing of the MOU in November of 2018 which provided a framework for key terms and conditions to be included within the Gas Agreement, including tax rates and domestic market obligation.
O’Neill said the Project Agreement is ready for signing next month.
“The Total Project is going to be signed on April 5th. That is the targeted date for that agreement to be signed.
“Again that is one of the biggest investments made in our country and we thank all our partners who are committed to this project,” said O’Neill.
The Papua LNG Project is estimated to cost K40 billion (US$13 billion), producing close to 2.7 million metric tonnes per annum and two trains developed to ensure PNG remains competitive, said O’Neill.
A major feature expected of the gas agreement is the Domestic Market Obligation (DMO) to ensure PNG also benefits from its gas resources.
“The availability of local gas for domestic market will open up new opportunities for our country, making sure our people benefit from the project and foreign investors can participate in the downstream sectors such as petrochemicals.”
Other features to be included in the gas agreement include tax rates and third party access.
The Prime Minister said the Government has laid down policies to ensure there is a secure environment for investor and for people to participate.
Meanwhile, negotiations on the PNG LNG Expansion through P’nyang are ongoing.
The PNG LNG expansion also expected 2.7 million tonnes per annum of gas to be produced.
Prime Minister O’Neill reiterated that the Department of Petroleum is working to ensure that such projects benefit PNG.
“All such project are being developed by the Ministry of Petroleum and I can assure you that all reviews are taken on its own merits, making sure we move into the negotiation stage.”
(PM O’Neill filepic)