BY DONALD HOOK

PNG MUST ACCELERATE the development of its natural gas projects and lock in customers or risk competition from overseas producers and unconventional coal seam and shale gas projects, according to an oil and gas expert.

Independent researcher and chairman of FACTS Global Energy, Fereidun Fesharaki, made the comments at the 11th PNG Mining and Petroleum Investment Conference in Sydney.

The Canberra Times quoting an AAP report says the three-day conference which finished today has focused on the $15 billion LNG project under development by ExonMobil in the Southern Highlands.

The joint-venture project with Santos, Oil Search and the PNG government is on track to deliver its first shipment of liquefied natural gas in 2014.

Dr Fesharaki says PNG must act quickly to secure Asian markets for the project and other LNG developments, or face competition from the cheaper Qatar LNG now being sold into the United States market.

“It is not possible to compete with Qatari LNG on economics.  The only way to compete is to tie up the market”, he said.

PNG Prime Minister, Sir Michael Somare, told the conference his government anticipated that LNG revenues would propel the economy to new heights and significantly improve PNG’s social indicators which had remained stagnant for too long.

He said PNG was expecting growth of 7.1 per cent in 2010 and 8 per cent in 2011.

Sir Michael said he hoped to witness the reopening of the Bougainville copper mine, closed 20 years ago amid secessionist violence.

“Our darkest hour came with the Bougainville conflict.  It was a setback from which Bougainville and the nation has not fully recovered.  Work is well underway to restore the damage,” he said.

The Prime Minister pledged his government to continue focussing on providing a stable political environment and transparent mining regime.