Clans hope for better solutions on LNG issues

LANDOWNERS are wary of the shortcomings of the PNG LNG project and are hoping the issues are better managed in the next LNG expansion, an official says.
Mineral Resources Development Company managing director Augustine Mano said there were a range of issues that needed an integrated approach from stakeholders.
He said there was a “fundamental error” in the calculation of royalties that needed to be fixed. In addition, development levies are disproportionate to the role carried out by provincial governments.
“In the past we have always been passive investors. What we are claiming for is always within our rights within the Oil and Gas Act – except that for this PNG LNG project we have sacrificed a lot to make it viable because we know that we need this project for the country,” Mano said.
He used as an example the Petroleum Resources Kutubu which in five years the MRDC had recovered its investment.
“I am sure that all the other joint ventures have done that as well. So the issue of recovery of the investment should not be a point to deny landowners and provincial government what is rightfully theirs,” Mano said.
“And the more the landowners and provincial government get will be invested back into this country.”