PNG Government's revenue to increase by K9 billion by 2030

The Papua New Guinea Government  revenue will increase by K9.7 billion in 2030 if the Gulf LNG project (Elk-Antelope) kicks off before then, according to the Department of National Planning and Monitoring.

The department in its 10-year plan (PNG Development Strategic Plan 2010-2030) says if the two major LNG projects proceeded (Gulf and PNG LNG Project); 2030 will reach the above figure including a K5.1 billion in additional tax revenue. 

However, the plan further stated that large scale emerging gas projects required a corresponding strengthening of state institutions responsible for policy making, administration and enforcement of regulations for the gas industry. 

“There was need for specialised expertise and considerable resources meant private sector would need to lead exploration and investments in petroleum industry. 

“It was important to have effective strategies for strengthening exploration and production. 

“Central to this was provision of an environment attractive for business, including a transparent, stable and balanced fiscal and incentive regime.”

According to the plan, the petroleum industry was not a big employer and does not integrate well with the broader economy. 

It was therefore crucial for the government to take measures to spread the benefits to the broader economy. The department in its plan, suggested that careful management of revenue flows would be required to ensure maximum benefit from petroleum was secured for current and future generations. 

The government was urged to work with landowners and stakeholders to help break down barriers and pave way for private sector exploration and development of oil reserves.

PNG Today / The National