| PNG Business News
MAKATI, PHILIPPINES - The PNG LNG project generated K16.5 billion for Papua New Guinea over the eight years of production from 2014 to 2022.
This includes K7.5 billion paid to Kumul (PNG’s national petroleum company) from the state's 19.4% equity, K1.3 billion to the Mineral Resources Development Corporation, K800 million in royalty payments, K700 million in development levy payments and K6.2 billion in tax payments.
"The PNG LNG project remains to date one of the biggest capital-intensive investment projects ever undertaken in the history of the country at the capital investment cost of $US17.7 billion (K62.4 billion), injecting millions of foreign currency into the local economy at the time of construction,” says David Manau, Secretary for the Department of Petroleum.
“I am happy to say that the future of the petroleum industry looks very promising with the government of Papua New Guinea signing the US$13 billion (K46 billion) Papua LNG Gas agreement in April 2019 to develop the Elk and Antelope gas fields in the Gulf Province.
“The signing of the two gas agreements defined the fiscal framework and paved the way for the commercial development of the two mega projects in the country after the successful delivery of the PNG LNG project.“
Regarding the impact of these projects, Manau said:
“The development of the two mega projects will certainly put PNG on the world map as the major regional LNG player, boosting PNG’s GDP, creating more job opportunities, increasing government revenue and injecting more foreign currency into the local economy in the years to come, while further elevating the country as a friendly foreign investment destination and attracting more interest in the industry.“