PNG Eyes Stronger LNG Trade as PetroChina Signals Buying Interest

Papua New Guinea's liquefied natural gas industry could see expanded opportunities in the Chinese market after senior executives from PetroChina International met with key Government ministers and energy sector leaders in Port Moresby this week.

The discussions centred on future LNG trade, with the Chinese energy company expressing interest in purchasing PNG-produced LNG through both spot market transactions and long-term supply agreements, reinforcing China's role as an important trading partner.

The PetroChina delegation visited Papua New Guinea on Monday and Tuesday, holding a series of meetings with Foreign Minister Justin Tkatchenko, Petroleum Minister Jimmy Maladina, officials from the National Petroleum Authority, Kumul Petroleum Holdings Ltd and ExxonMobil PNG Limited.

 PNG Eyes Stronger LNG Trade as PetroChina Signals Buying Interest/Photo supplied

During the meetings, PetroChina representatives outlined the company's capacity and willingness to increase purchases of PNG LNG, describing the country as an important supplier to China's growing energy market.

Chinese Ambassador Yang Xiaoguang said China remained committed to strengthening economic cooperation with Papua New Guinea and supported an open trading environment.

He said China firmly supported free trade and opposed the use of trade as a means of economic pressure against other countries.

The Ambassador also warned that any move to halt purchases of PNG LNG on the spot market would be short-sighted and would eventually produce negative consequences.

"China always firmly supports free trade, firmly opposes using trade issue as a tool or weapon to conduct economic coercion against others," Ambassador Yang said.

"Threatening to stop purchasing PNG's LNG on the spot market is short-sighted and will ultimately backfire."

He added: "China boasts the world's largest middle-income group and a supersized market. China stands ready to expand LNG import from PNG, and deepen our cooperation in trade and other areas, continuously enriching the China-PNG comprehensive strategic partnership."