Growth to remain low, says bank

IN the absence of major new investments in PNG’s extractive industry in the short term, growth will remain low, according to the Asian Development Bank (ADB).
The bank in its 2020 outlook report said gas production was expected to plateau but could fall this year in response to reduced demand from China because of the Covid-19.
PNG sells about a quarter of its gas to China, mostly on long-term contracts.
However in February, some buyers there were unable to take delivery of international gas purchases.
Oil production may expand slightly this year as some oilfields return to normal production following the 2018 earthquake.
However, output would likely to fall thereafter in line with an overall declining trend in oil production as oilfields mature.
In 2020, exploration and capital investment in the oil industry would likely scale down in response to lower oil prices.
Meanwhile, gold and copper production was expected to expand, though some mining operations could suffer setbacks as Covid-19 crimps supply chains and staff movement to and from mine sites.
The Ok Tedi gold and copper mine in Western and Lihir gold mine in New Ireland were both expected to increase production this year and next year, thanks to recent and ongoing capital investment.