P’nyang Gas project to boost PNG economy

 THE P’nyang gas project in Western will represent an investment of more than US$9 billion (K28 billion), Treasurer Patrick Pruaitch says.  He said this would really help the country’s economy. 

“P’nyang represents an investment costing up to US$10 billion (K31 billion),

“This will give a tremendous boost to the Papua New Guinea economy at a time when it is under significant stress as a result of the sharp fall in commodity prices and a big drop in Government revenue. In approving P’nyang, the Government will take into consideration lessons we have learned from the development of the PNG LNG project, and be even more steadfast in ensuring positive outcomes and impacts are achieved on a local regional and national level,” he said. 

Pruaitch made the comment on Monday when announcing that Prime Minister Peter O’Neill and Cabinet had approved plans to sell down 4.27 per cent of the Government equity in the PNG LNG project to a group which included landowners. He said the implications of the 4.27 per cent equity sale and the final agreement would represent a win-win situation for all parties concerned. 

“The PNG project area landowners, along with their provincial governments, would benefit from the dividend stream from the ExxonMobil-managed LNG project, while the capital injection from the equity sale would directly support the Government’s 2016 budget,” he said.

Pruaitch said he was keen to see LNG project royalties and development levies start to flow, along with settlement of the LNG equity sale, prior to any commencement of work on the P’nyang gas development at the PNG LNG project.