PNG had been pressing for better returns than it obtained in the original liquefied natural gas (LNG) agreement in 2008.

Both PNG and Esso PNG P’nyang Ltd, chaired by Mr Larden, are now eager to reach an  agreement to kick start the K45 billion project which is estimated to boost PNG’s  LNG exports.

Mr Kua said the parties expect to sign a heads of agreement within weeks.

“The project represents a very important potential source of revenue,” Mr Kua said. "As you know PNG is always battling for finance to meet the demands of our people.

“When we go to the negotiating table, we will go with a firm commitment to reach a deal. It will require give and take on both sides,” he said.

The construction of the P’nyang project will take eight years and itself greatly boost the PNG economy.

“This tremendous investment will extend gas pipeline infrastructure into Western Province and have a lasting economic impact for PNG and its people,” said Mr Kua.

Mr Larden said P’nyang shows the growth opportunities for Exxon’s operations in PNG.

“We look forward to working closely with the PNG government and landowners to progress the proposal,” he said.

Kerengua Kua is one of the few PNG politicians for whom I have great admiration.

Now his negotiating team has a tough job to do - to ensure PNG does not sell its precious resources for a pittance.

I wish them strength.

Sources: PNG Bulletin Online; Reuters