Chamber commends Govt on its ‘positive’ approach to projects

THE PNG Chamber of Mines and Petroleum has commended the Government for its positive approach on resource projects, which is needed to support the national economy.
Chamber president Anthony Smare was commenting on the recent passing in Parliament of the Oil and Gas, Papua LNG Project Amendment Bill, 2021.
He said it “illustrates the sincere commitment to get the Papua LNG Project off the ground”.
“We need the Papua LNG project to go into construction to boost the economy, create jobs and opportunities for PNG businesses and boost government revenue to (pay for) essential services,” he said.
Petroleum Minister Kerenga Kua said given the significant capital intensity of the Papua LNG Project, which would cost US$10 billion (about K34.47 billion) to US$12 billion (K41.36 billion), it must be financed using debt from lenders and equity from project sponsors, or joint venture partners.
“The Papua LNG project participants are progressing the technical work, so that the two Papua LNG project liquification trains may proceed in the project site at Caution Bay,” Kua said.
“Once this is completed, and following the start of Feed, they will submit an application for a petroleum development license.
“The prompt passage of the bill will demonstrate to sponsors, LNG buyers and financiers, the State’s commitment to the Papua LNG Project, contract sanctity, and the fiscal regulatory regime, contemplated by the Papua LNG Project gas agreement. The passing of this amendment is the first positive sign the industry has seen that indicates to investors in the extractives sector, that the Government is mindful of returning investor confidence to the levels they were at, before the closure of the Porgera mine.”