Prime Minister James Marape says Papua LNG is progressing towards a December 15, 2026, Final Investment Decision (FID), as Papua New Guinea prepares for a major period of petroleum investment over the next decade.
Speaking last week at Government House, Konedobu, following the swearing-in of new Vice-Ministers, PM Marape said newly appointed Vice-Minister for Petroleum Hon. Gidron Maso Karipe would assist Petroleum Minister Hon. Jimmy Maladina as the Government works with landowners, provincial governments and project partners to progress Papua LNG.
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PM Marape said Papua LNG has an FID sunset date of December 15, 2026, with the Government working to complete outstanding landowner and provincial government processes.
He said he had received strong assurances from project leadership on progressing the project towards FID.
“I want to thank TotalEnergies, especially the Global CEO, Mr. Patrick Pouyanné, who understood that to cross the line in Papua LNG, synergy between PNG LNG and Papua LNG, and having one unified Project Operator, was important,” PM Marape said.
“ExxonMobil is already operating PNG LNG. If they operate Papua LNG, then the synergy will exist. I think that has moved in a positive way. Fifteenth of December is the sunset clause to the announcement on FID.”
The Government recently outlined revised arrangements for Papua LNG, including the pathway towards the December 15 FID target and increased potential PNG equity.
PM Marape appealed to landowners and leaders in Gulf and Central provinces to work constructively through remaining issues so agreements could be progressed.
“Put your country ahead. See the big picture. If you have any disagreements, then there should be a space to agree to disagree. Put it on the disagreement list. But those that are agreed upon, sign up on,” he said.
He said Papua New Guinea had experience from the PNG LNG development that could help guide negotiations while recognizing that Papua LNG had its own circumstances.
“The precedent, the structure, the template and the ratio are already there in PNG LNG.
“Sometimes human greed suffocates what is good for all of us. Let’s not allow greed to suffocate what is good for all of us, individual or collective. Let’s see the big picture for our country.”
PM Marape said the project was being advanced at a time of global economic, financing and geopolitical uncertainty, making it important for PNG to secure investment while international capital was available.
He said the Government wanted agreements with landowners and provinces substantially progressed before November to give project partners confidence to proceed towards FID and financing.
PM Marape said the revised arrangements provide PNG with an additional 2.5 per cent equity opportunity, taking potential total PNG participation in Papua LNG to 25 per cent, alongside other improvements negotiated by the State.
He said the domestic gas pricing formula had also been reduced from 9 per cent JCC to 5 per cent JCC, which the Government expects to reduce the cost of domestic gas supplied for electricity generation.
PM Marape also said changes to PNG LNG royalty and development levy calculations would remove capital costs from certain deductions, providing additional benefits to eligible landowners and provincial governments.
Looking beyond Papua LNG, PM Marape said the Government’s objective was to sequence major projects to maintain investment rather than experience long gaps between construction cycles.
“Exciting times are coming in the next 10 years in the LNG space. We’ve got Papua and P’nyang that will go back-to-back.
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“In Kina-value terms, Papua LNG is an investment at K60 billion, and P’nyang LNG is an investment at K40 billion. So that’s a K100 billion investment programme.”
He also pointed to the Pasca Project and other petroleum prospects, alongside major mining developments, as part of the broader investment pipeline.
“The Oil and Gas space has excitement in the next 10 years,” PM Marape said.