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Port Moresby
October 28, 2021
Business News Politics

Papua LNG Agreement Shaping Up

The National Government has now granted approval for Papua LNG project to proceed with the implementation of the Project Gas Agreement, following an NEC sanctioned review.

Prime Minister James Marape, and Petroleum Minister Kerenga Kua addressed the media this afternoon, outlining the State’s position on several issues including National Content, Petroleum Pipeline Third Party Access, Pipeline Ownership, and LNG Tankers.

The Spirit of Hela, one of six LNG carriers that operate in PNG

The Prime Minister expressing his reluctance to sacrifice the greater interest of the country in the haste of getting projects secured or undertaken.

“Our minister has undertaken in the last 90 days the fullest appreciation of the court agreement in totality the context of law we have, and ah has made greater approaches to the project partners to ensure that we secure what needs to be secured within the context of what is our rights and entitlements. Respecting the agreement that was signed before we took office.”

The Petroleum Minister explaining the importance of engaging PNG owned and operated companies under existing and future agreements

“Citizen-owned PNG-based companies who’ve been here during hard times, good times, bad times, they should now be given an opportunity to contract to the project and ensure they will make sure that some of these constructions span is kept in this country and we’ve gone for as much as we can and uh total has agreed they agreed with the spirit and intent of that approach however that approach however the appropriate time to discuss that approach will be after the project designs have been finalized which is what they call FEED then we can assemble a technical team on both sides and we can use a pencil to mark out what should go to the contractor, the operator to engage  and what should be contracted out to Papua New Guinean-based companies”

“And so they’ve agreed that in principal the states participation will be maximized and that spirit will be respected so that commitment to keep an open mind and an open heart about maximizing opportunities for Papua New Guinean companies, landowner companies, provincial government companies during the construction phase is left open and we will approach it with that spirit in mind.”

These agreements now pave the way for the State to realize increased National Content during the construction phase, future pipeline ownership, and future shipping ownership, which the leaders say are substantial gains

By Meriba Tulo, EMTV News, Port Moresby

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