Prime Minister James Marape says the P’nyang LNG project will move ahead after the Papua LNG project reaches Final Investment Decision, with the government claiming the project will deliver a 63 percent State benefit share to Papua New Guinea.
Speaking on Monday in Port Moresby after returning from France, where he met French President Emmanuel Macron, PM Marape said the government was sequencing major gas developments to maintain economic activity through to 2040.
He said Papua LNG, initiated under the former O’Neill government, must proceed first before construction on P’nyang begins.
PM Marape said the State had negotiated improved terms for the P’nyang project compared with earlier LNG agreements, claiming the project would deliver a higher State benefit share than both Papua LNG and PNG LNG.
He also said the agreement includes an additional 10 percent equity allocation for landowners and Western Province interests.
He said the government was planning a pipeline of resource projects expected to run from 2027 to 2040, including Papua LNG, P’nyang, Muruk, Pasca A, Stanley Gas, Ketu Elevala and a proposed new gas development in Central Province linked to ongoing exploration by TotalEnergies.
“P’nyang is a Marape Government signature project,” PM Marape said in a statement.
“Papua LNG is an O’Neill Government project, which we need to get on the line. Once Papua FID is reached and sanctioned for construction, P’nyang will happen straight after.”
He said the total State benefit for P’nyang would stand at 63 percent, compared with nearly 49 percent for Papua LNG and around 48 percent for PNG LNG.
“Total State take for P’nyang is above 60 percent, to be exact at 63 percent,” PM Marape said. “P’nyang clearly has the Marape/Pangu-led Government blueprint of taking back more for our country.”
PM Marape said the government had also secured an additional 10 percent equity for landowners and Western Province under the P’nyang gas agreement.
He outlined several projects the government expects to drive economic activity over the next decade and beyond, including Muruk, Pasca A and Stanley Gas.
According to PM Marape, the Pasca A project would see Mineral Resources Development Company (MRDC) hold a 50 percent stake, with total State revenue benefits, including taxes, estimated at around 70 percent.
He said discussions were continuing between developers and landowners over the Muruk project to ensure both parties were aligned before development proceeds.
PM Marape also revealed that TotalEnergies was investing about US$200 million in exploration activities in Central Province, including prospects in the Gulf of Papua such as Wildebeest.
“We are not working in isolation or on one project at a time,” he said. “We want to have a series of projects running at the back of Papua LNG. We will sequence P’nyang, get Pasca A up and running, and bring Muruk, Stanley Gas and others in.”
PM Marape acknowledged delays affecting some projects but said the government was continuing discussions with investors to keep developments on schedule.
“Once Papua gets off the ground, it should kick everything else into place,” he said.