PNG's North Fly MP calls for standalone gas project

Papua New Guinea's  NORTH Fly MP James Donald says the development of the K151 billion P’nyang gas project in the electorate must be done separately — if ExxonMobil wants to develop the gas project.

Donald attended ExxonMobil’s 100 years in PNG anniversary celebrations at APEC Haus in Port Moresby.


“It is non-negotiable for the developer (ExxonMobil) to dictate terms, but must hear the resource owners call for a separate, standalone LNG project instead of ExxonMobil’s initial plans to use the existing,” he said.

The P’nyang gas proposed development concept based on preliminary studies conducted is such that the gas and condensate export pipelines will connect to the existing facilities of the foundation project (PNG LNG) at the Kutubu Central Processing Facility (CPF).

“I don’t want the electorate and province to miss out big time in developmental infrastructures, royalties and other spin off benefits when the gas is not piped through Western,” Donald said. He said the P’nyang gas must be piped to Daru and separate offshore processing facilities built at Daru for processing and exporting.

According to Prime Minister James Marape, the P’nyang liquefied natural gas project in Western will be worth US$44 billion (about K151.1 billion) upon completion.

The construction phase will begin after the completion of the Papua LNG’s construction phase around 2028.

Earnings from the project will start around 2032 or 2033.

The Government has secured 34.5 per cent in equity shares – the highest ever the country will be getting in a LNG project.


The National / Pacific Mining Watch


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