THE long-awaited project sanction, or the final investment decision (FID), for the multi-billion kina Papua New Guinea liquefied natural gas project is set for today at a signing ceremony at Parliament House.
With most of the landowners in the project areas signing up, and the remaining two or so groups due to sign today, the long drawn out and contentious licence-based benefits sharing agreement (LBBSA) process is just about complete, paving the way for the ceremony today.
ExxonMobil and the Mineral Resources Development Company (MRDC) got the ball rolling yesterday with the signing of various agreements regarding landowner involvement in the massive project.
The agreements were signed by MRDC managing director Augustine Mano, Esso Highlands boss Peter Graham and ExxonMobil vice-president Jack Williams Jr, who flew in to Port Moresby for the project sanction.
MRDC will represent landowner interests in the PNG LNG project.
Information available during the signing at Government House indicated that it was the Coordinated Development and Operating Agreement and Completion Agreement with the MRDC.
These agreements provide formal governance for the project and incorporate all components including upstream, gas transportation pipeline, and liquefaction.
They also set out the project unitisation principles.
During the project sanction ceremony today, the project partners are expected to clear the way for the State to take up its 19.4% equity in the project.