LNG project could double GDP
By ANTON HUAFOLO
THE liquefied natural gas project of Exxon Mobil and partners has the potential to more than double the size of the Papua New Guinea’s economy.
The project will boost the country’s gross domestic product (GDP) and export earnings significantly, and the net benefits to the nation and its people are potentially large.
ACIL Tasman, a consultancy firm that has been engaged to conduct an economic study on the project, said in its economics policy strategy that “the PNG LNG project offers a means of unlocking value from the extensive gas resources from the Southern Highlands region”.
Under its case study assumption, ACIL Tasman said GDP would rise in current real terms from K8.65 billion to an average K18.2 billion per year and oil and gas exports would increase more than four-fold with a product value estimated from the LNG project of K11.4 million, compared to earnings of 2.6 billion.
The ACIL Tasman report said that during the initial stages of construction, 7,500 jobs full time will be created with 20% of them to be filled by PNG nationals, and when full product takes place, 850 full-time positions will be maintained, most of them to be held by Papua New Guineans.
Landowners and the national and provincial governments’ direct benefit from the project, the report said, is estimated to be K114 billion over the 30-year life of the project.
“The project has the potential to transform the economy of Papua New by providing essential, providing a major increase in government revenue, royalty payments to landowners, creating jobs.
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