Long journey for Papua LNG

By GYNNIE KERO and SHIRLEY MAULUDU
THE front-end-engineering-design (FEED) stage of the US$12 billion (K41.28bil) Papua LNG project will take about two years, and another four years for the actual construction, according to the operator Total E&P PNG Ltd.
Managing director Jean-Marc Noiray said the economic benefits of the projects would be realised after the construction phase.
He made the comments following signing of the project’s fiscal stability agreement in Port Moresby yesterday.
“We need to embark on the whole stabalisation of the project which we call the pre-FEED. We are working hard on that,” Noiray said.
“The FEED itself will last between 15 and 18 months, from the moment we reach the final investment decision.
“And from final investment decision to first gas, we have about four years of construction.
“It’s a long journey before we get to the first gas and the first revenues for the developers and the country.
“The project is a long journey.
“It was a milestone as we achieved solid steps along the way.
“By signing the stability agreement today (yesterday), we are building solid foundation and also a confirmation that we can now go ahead.” Meanwhile, Petroleum Minister Kerenga Kua assured landowners of Gulf and Central that they would get their fair share of benefits from the project.
“I want to assure everybody that this process is at an advanced stage,” Kua said.
“Landowner identification has been substantially completed. However the project developer cannot bring it to my level at the department for the final vetting partly because there is an injunction sitting there somewhere, stopping the company Total from presenting their studies to me.
“Now that we have achieved this, we will now put our focus back to the National Court proceedings.
“I want to assure the landowners in Gulf and Central that we will do everything possible to hear them out and make sure that the processes are fast-tracked.”