The proposed Papua LNG Project in Gulf Province is set to operate before the 51st Independence Anniversary of the country, according to Petroleum Minister Jimmy Maladina.
Minister Maladina said the government is working to get FID (Final Investment Decision) off the ground.
The government is pushing to meet this deadline and ensure the project benefits the people of Papua New Guinea and the local landowners, he told a media conference yesterday in Port Moresby.
He said that in 2019, the gas agreement was signed.
However, he said, due to COVID-19 and all the other issues, it came and delayed the project.
He was addressing the landowners on beneficiaries.
“When we signed the gas agreement in 2019, the bid was around $12 billion. In the first bid, it was $18 billion,” Minister Jimmy said.
“However, we have brought it down to $14 billion. It is not because of the interests of the government or anyone, but it is through economic principles,” he said.
Minister Jimmy assured the landowners that they have looked back at some of the cost developments in the area, so they talked with developer Total,
“We got the state negotiating team, and currently, they are still talking with Total to find a way forward.
“But Total has gone ahead and spent a lot of money and come to the final stages of the project,” he said.
Therefore, NEC, through Prime Minister James Marape, advised the landowners, developers, and diplomatic partners to have Agreement Forums as soon as possible to let the project go on:
■They have to have clear development goals and sign them.
■They have asked us for some assistance as a state S&T, and now we are still negotiating with Total.
■They have put in the application already into PDF, and now it’s been submitted into the department and gone through.
Minister Maladina said: “Environmental permits have been cleared, and the development forum is the next step.
“The forum will present directors’ proposals to landowners and impacted communities, and it’s a crucial exercise for the project’s success.”
He added that the project must follow the precedent set by PNG LNG and use the same benefits formula.
This means that the provincial government, district, LNG, and impacted communities will be consulted and involved in the decision-making process, Minister Maladina said.
Minister Maladina highlighted the benefits, including IDG, BDG, royalty, and equity, which will be distributed to impacted communities.
Minister Maladina said the government will follow the law and existing agreements, but minor amendments may be made to ensure the project’s success.
The development forum will be held in Perinat, and impacted communities will be consulted.
The government’ he said, is committed to transparency and community engagement, and the forum is an opportunity for stakeholders to discuss the project’s details, he said.
He said that all ILG members, LLG presidents, local councilors, and local landowners should give full support to deliver the project footprint on time.
“No one is left behind the scenes. Each and every one, including the surrounding communities of Kikori, Kerema, and Central province, will benefit,” Minister Maladina said.