The signing of amended Papua LNG Gas Agreement today clears a major hurdle towards a Final Investment Decision (FID), despite continuing divisions among project landowners over the selection of parent landowner companies and other equity-sharing arrangements.
The revised agreement, signed at Government House in Port Moresby and witnessed by Governor-General Sir Bob Dadae, is expected to pave the way for the Papua LNG partners to make the FID before the end of this year.
The project represents about US$14.5 billion, or close to K60 billion, in foreign direct investment, making its progression a major economic priority for the country.
Prime Minister James Marape said in a statement that the Government had proceeded with the revised agreement because Papua LNG remained critical to attracting large-scale foreign investment, while negotiations over landowner representation, equity shares and other benefit-sharing issues continue to be addressed.
Speaking to media this morning after the signing, PM Marape said the amended agreement reflected the realities of the global investment environment in 2026 while protecting Papua New Guinea’s long-term interests.
“This is a major milestone for the progress of our nation towards unlocking our second LNG project and moving decisively towards Final Investment Decision and construction,” PM Marape said.
Welcoming the signing, PM Marape said the project’s development costs had been reduced from about US$18 billion to approximately US$14.5 billion following a comprehensive review to ensure the project remained globally competitive.
He said the Government was targeting FID before December 15, although project partners had indicated they would work to reach the milestone earlier.
Under the amended agreement, Kumul Petroleum will retain its 22.5 percent equity stake, while the State has expressed interest in acquiring any additional equity that becomes available.
PM Marape said the State had also agreed to investment incentives valued at about US$1.95 billion, alongside a “give or take” mechanism intended to ensure the State could recover additional value when project returns are stronger.
He said Papua LNG would generate jobs, business opportunities and economic activity across the country, while helping the Government sequence the project with the proposed P’nyang LNG development.
The Government estimates Papua LNG, together with P’nyang LNG, could generate almost K100 billion in construction activity over the next decade.
PM Marape thanked TotalEnergies, ExxonMobil, Santos, JX Nippon, Kumul Petroleum, MRDC and other project stakeholders for maintaining their commitment to Papua New Guinea.