Prime Minister James Marape has assured about 800 Papua LNG landowner representatives at Parliament House today that their revenue entitlements will remain protected as the US$14.5 billion project advances.
Prime Minister Marape yesterday made the remarks during a gathering and historic group photograph involving approximately 800 Papua LNG landowner representatives from various provinces and project impact areas, including Gulf and Central provinces.
The occasion brought together traditional landowners, provincial leaders, Members of Parliament, project developers and other stakeholders, demonstrating their collective commitment to progressing the project.
Also present were former Kairuku-Hiri MP and former Minister for Petroleum and Energy Sir Moi Avei, Finance Minister and Kerema MP Thomas Opa, Minister for Provincial and Local Level Government Affairs and Kikori MP Soroi Eoe, Hiri-Koiari MP Keith Iduhu, project developer executives and other stakeholders.
Prime Minister Marape acknowledged the historical contributions of Sir Moi Avei and the late Grand Chief Sir Michael Somare towards establishing PNG’s LNG industry, recalling his own involvement as a Cabinet minister during that period.
“There is no one champion; all of us are champions in this work,” Mr. Marape said, responding to his introduction at the gathering as the champion behind Papua LNG.
“There are some things we can win, some things we must lose, so we win in the big picture for our children into the future.”
He described Papua LNG as a major development that would build on the existing PNG LNG project and create synergies for future developments, including P’nyang LNG.
“This is a monumental Project. We want to win from Construction Dollars, as well as Production Dollars. Two different Dollars,” he said in a statement.
The Prime Minister said Papua LNG represented approximately US$14.5 billion, equivalent to about K70 billion, in anticipated investment. Construction activities are expected to generate employment, business opportunities and additional government revenue.
He expressed hope that construction could begin around mid-December, with major development continuing towards 2029–2030.
Prime Minister Marape clarified that although certain State petroleum tax earnings from PNG LNG would be deferred or forgone because of synergies with Papua LNG, landowner and provincial government revenue entitlements would not be affected.
He explained that approximately K5 billion in PNG LNG petroleum tax revenue between 2029 and 2032 would be forgone under the development arrangements.
However, he said the adjustment related to depreciation costs associated with Papua LNG that would otherwise take effect from 2033.
Mr. Marape said the arrangement should be considered alongside the broader economic benefits expected from the K70 billion construction phase.
He said construction expenditure would already be generating significant economic activity by the time the petroleum tax adjustments took effect, allowing the State to collect additional revenue through other forms of taxation.
“In everything we do, in our negotiations with Total and Exxon Mobil, we have never compromised Landowner and Provincial Government Revenue,” Mr. Marape said.
He said the Government’s approach was to balance immediate State revenue considerations with longer-term economic opportunities while safeguarding the interests of resource owners and host provinces.
Prime Minister Marape acknowledged the cooperation between Gulf and Central province landowners, including their agreement on an 80–20 benefit-sharing arrangement, which he said reflected their respective contributions and participation.
He said the Government would continue engaging landowners through Tier 2 consultations, including discussions on business development grants, infrastructure development grants and infrastructure tax credit projects.
Business development grants would be considered beginning with the 2027 National Budget, alongside longer-term infrastructure initiatives.
Mr. Marape stressed that resource-rich communities, particularly those in Gulf Province and the Hiri and Motu-Koita areas of Central Province, must experience tangible improvements in their living standards.
He said communities hosting major resource developments should not remain bystanders while the nation benefited from their resources.
The Prime Minister also highlighted longstanding cultural and trading relationships between Gulf and Central province communities, saying Papua LNG offered an opportunity to strengthen those connections through modern economic development.
Related news: https://www.thepngsun.com/pm-marape-promises-greater-benefits-for-gulf-through-papua-lng/
He thanked landowners, provincial governments, developers and leaders for their patience, cooperation and sacrifices.
“This is about the next 20 years, next 30 years for our children. Thank you for investing in your children’s future,” Mr. Marape said.
He reiterated the Government’s commitment to advancing Papua LNG while ensuring its benefits contribute to improved livelihoods, wider economic opportunities and Papua New Guinea’s long-term development.