Governor-General seals guarantee agreement for LNG project

National, Normal

GOVERNOR-General Sir Paulias Matane yesterday signed the States Guarantee Agreement for the PNG LNG project.
The signing, held at Government House yesterday, was for the States Guarantees, the Mineral Resources Development Company (MRDC), Independent Public Business Corporation and Petromin’s participation in the PNG LNG project.
The agreements, which give legal clearance for the LNG project, were signed by Sam Inguba (Petromin), Treasury secretary Simon Tosali, Moses Koiri (IPBC) and Joyce Agaru (MRDC).
An industry source said the State was guaranteeing the respective obligations of MRDC, Petromin (via Kumul LNG Ltd) and IPBC (via Kroton No.2 Ltd) in respect of the PNG LNG financing. 
The source said “none of the said parties are providing security for the financing”. 
“Security is being provided through State Guarantee which was approved by NEC last week.”
Kroton No. 2 Ltd is the arm of IPBC that will hold the State’s 19.4% equity in the LNG project.