Negotiations on LNG fifth train

PAPUA New Guinea has the potential to become a K200 billion economy over the next decade should all five LNG trains come to fruition.
Negotiations on LNG fifth train Negotiations on LNG fifth train Negotiations on LNG fifth train Negotiations on LNG fifth train Negotiations on LNG fifth train

Staff Reporter

This was said by Prime Minister James Marape when he addressed the annual Back to Business Breakfast at the Hilton Hotel in Port Moresby late last week.
 
Marape said PNG had sufficient gas resources to develop five LNG trains which would have a massive impact on the economy.
 
"Certainly, five trains of LNG will help me achieve my dream that we will go past K200 billion economy in 10 years," he said.
 
"That is achievable and within sight. We are working to ensure that the discussion on a fifth train is secured at terms that are not harmful to investors but also on terms consistent with the laws of this land."
 
In that regard, Marape also said that investors and stakeholders in the resource industry had expressed satisfaction to amendments to the existing resource laws.
 
The Post Courier newspaper reported that Marape said discussions with industry about proposed changes to the Oil and Gas Act and other resource laws had been positive.
 
He said the industry was willing to embrace changes to amendments to laws.
 
On the Wafi-Golpu gold project, Marape said the government was "in the business of eliminating the previously signed memorandum of understanding and were now holding discussions with the provincial government and landowners". He added that he believed that very soon Wafi-Golpu would be a project generating revenue.
 
Below is an edited version of what Marape said:
 
Our budget in 1975 was around K30B, our population was under 3M. Now our economy is over K80 billion with a population over eight million people.
 
Now we have a robust economy and a strong judiciary. We are competing with Asian tiger economies like Myanmar, Thailand but we have a strong judiciary. 2020 is an important year for PNG. Our leaders want to maximize the opportunities for our country. I thank the PNG Business community for your contributions, taxes, employing of Papua New Guineans.
 
We are trying to move away from our dependency on mining and oil and gas. Our biodiversity and our people's ownership of land will ensure a better and more sustainable economy. I want to see 90% of our population engaged in participating in the economy. In 10 years' time I envisage you can drive from Alotau to Port Moresby to Mendi and to Lae.
 
Thanks to the Australian government for the coral-seas cable which will be turned on shortly. By2025 we want to see more people connected to electricity which is supplied at cheaper prices. We want to reduce the cost of telecoms and power. By this year the independent Commission against Corruption Act and the Whistleblower's Act will be passed by Parliament.
 
Discussions on P'ynang are ongoing today for a fifth train with our state team. The two trains for Papua LNG have been secured. If the five train negotiations fail then in the worse-case Total will still go ahead with their two trains.
 
We are working with Exxon Mobil and its partners to get the fifth train so we will have five trains supplying LNG to the world markets by the end of this decade. We will then be in the top 10 of LNG producers. Within 10 years I envisage a K200 billion economy. We have given concessions on PNG LNG and on the Papua LNG. We expect the revenues as set out in the Oil and Gas Act for the five train currently being negotiated.
 
On Wafi-Golpu, we will cancel the memorandum signed outside of government and will sign a new agreement shortly. For Porgera, the renewal of the mining lease is being negotiated. 

 

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