PNG Eyes K100 Billion LNG Investment Pipeline As Papua LNG Advances

A K100 billion LNG investment pipeline involving Papua LNG and P'nyang LNG has been outlined by Prime Minister James Marape as PNG prepares for the next stage of major petroleum development.

Mr Marape said Papua LNG was progressing towards a Final Investment Decision, with December 15, 2026 set as the project's FID sunset date and the Government working to resolve outstanding agreements with landowners and provincial governments.

PNG Prime Minister James Marape/Photo supplied

Speaking at Government House in Konedobu, Mr Marape said the appointment of Petroleum Vice-Minister Gidron Maso Karipe would strengthen the Government's work with Petroleum Minister Jimmy Maladina on the project.

He said project leadership had given the Government assurances that Papua LNG remained on track towards the investment decision.

A key development has been the move to have ExxonMobil take over operatorship of Papua LNG, bringing the project under the same operator already responsible for PNG LNG.

Mr Marape said the arrangement would allow the two developments to benefit from greater operational synergy.

“I want to thank TotalEnergies, especially the Global CEO, Mr Patrick Pouyanné, who understood that to cross the line in Papua LNG, synergy between PNG LNG and Papua LNG, and having one unified Project Operator, was important,” he said.

The Prime Minister said negotiations with landowners and provincial administrations needed to advance substantially before November so project partners could move with greater certainty towards financing and FID.

Revised arrangements could also increase PNG's participation in Papua LNG by another 2.5 per cent, potentially taking total national equity participation to 25 per cent.

Mr Marape said the Government had also negotiated changes affecting domestic gas pricing and royalty and development levy calculations.

The domestic gas pricing formula has been reduced from nine per cent JCC to five per cent JCC, which the Government expects will lower the cost of gas used for electricity generation.

Changes to the calculation of PNG LNG royalties and development levies are also expected to provide additional returns for eligible landowners and provincial governments.

Mr Marape said the country's petroleum sector would extend beyond Papua LNG, with P'nyang LNG, the Pasca project and other petroleum prospects forming part of a wider resource investment programme.

He placed the estimated investment for Papua LNG at K60 billion and P'nyang LNG at K40 billion.

“Exciting times are coming in the next 10 years in the LNG space. We've got Papua and P'nyang that will go back-to-back,” he said.

“So that's a K100 billion Investment Programme.”

Mr Marape said major mining projects would also contribute to the broader investment pipeline as PNG seeks to maintain economic activity through successive resource developments.