Papua New Guinea’s second LNG processing site to be located near first LNG site


The partners in Papua New Guinea’s second LNG plant have chosen Caution Bay as the processing site for the Elk-Antelope project, paving the way for close cooperation with the nearby ExxonMobil PNG LNG venture.

Papua LNG map

Location of new and existing LNG plants. Credit: Oil Search

The Total-led Elk-Antelope liquefied natural gas venture, whose partners include InterOil and Oil Search, say the LNG processing plant will be located at Caution Bay, about 20 kilometres north-west of Port Moresby and adjacent to the existing PNG LNG site.

The site of the upstream processing plant will be located near the Purari river in Gulf Province, about 360 kilometres north-west of Port Moresby.

The pipeline routes to bring the LNG to Caution Bay will include 75 kilometres onshore and 265 kilometres offshore.

Oil Search CEO Peter Botten

Oil Search CEO Peter Botten

It’s a ‘significant milestone’ for the project, according to InterOil chief executive Mike Hession in a statement.

‘The location of the LNG site at Caution Bay will also maximise the opportunity to pursue potential synergies with the PNG LNG project,’ said Peter Botten, managing director of Oil Search, which has a stake in both projects.

The project will be known as Papua LNG.

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Botten says the decision means the partners can ‘commence early engagement with key stakeholders, including state, provincial and local governments as well as local communities’.

Hession said decisions on the final structure of the Papua LNG venture, and the production capacity, would be made once further drilling had been carried out, and preliminary engineering work would get under way later in 2016.

Analysts reported last November the US$20 billion (K50 billion) project would take at least five years to build with the first LNG exports due in late 2020 or early 2021.


However, Gulf Provincial government and landowners have rejected the developer’s intention to pipe gas out of Gulf province, and is seeking a meeting with the Prime Minister.

Governor Havila Kavo has told EMTV Gulf is a maritime province and its resource should be exported directly.

He also says the developer’s intention to change the name of the project is also unacceptable.


  1. Eddie Micky says

    I strongly disagree that the developers should not build the processing plant at caution bay, It is the wish of the Gulf Landowners and People to have the processing plant established within the Province.
    Gulf province is least developed province since 41 years of independence and my people have sufferred enough for development. Let it be there and have great impact to the province..

  2. simon jack says

    i am totally agreed for 100% png downstream plant to be establish in Gulf for the spin off benefits.Take back png.

  3. arthur williams says

    What’s happened? Why are your MPs silenced now in 2019 about the majority of Gulf people wanting their resource processed in Their province.
    I lived for time in sleepy muddy undeveloped Baimuru

  4. paiara paul says

    paul nako
    i also disagree with the this second LNG pipeline to be centered in central province, i’m prety sure that if they do then, the Gulf people will suffer.
    I was born in a rural village called apiope, my home land just located at the mouth of the Purari river, and my people get food staff from this river even used water for cooking, fishing, drinking etc… since currently Logging company oprating and now LNG. Honestly God Knows there is no government services riching my home. I’m also concerning about near by villages along the purari rver. Please this is my request to all provide them with better water tanks, education, health services and others. thank you to our good government leaders, you can do it’s possible.

    • I’ve agreed with you !! I am also born in a small village call Aivau, along the coastline from Vailala River. As I’ve seen people from our small villages, around Purari and vailala Rivers are sufferings from their living hood. Our rivers are drying out from logging and now the pipelines are going through offshore from coastal villages, affecting our marine lives. It’s so sad the rich companies, come into our traditional lands and take out our rich resources and left us ! land owners with nothing, but suffering. Our God !!! help us to destroy, their empires, if nothing good has done to our land owners from Purari/ Vailala and all the Gulf people !

  5. Gulf is not develop letz make development in gulf and the people of gulf look after it after all this time waiting for blessings to come so let it be there in gulf and let the people of gulf take care and control of it.

  6. Eddie Kimai says

    Gulf Province will lose big time if we allow the Processing Plant to be in Caution Bay., All Gulf people its a total “NO” to the developer and the Government., let alone everything be process back in Gulf… say no and act before we shed tears..

  7. Gulf province is one of the least development provinces up till now therefore I believe it is time now for us to focus more seriously on development rather than self-benefits. Infrastructure, building new aid posts and the list goes on hence is very vital thus need to be considered for most.
    Gulf people we must develop our land first before any other things comes in place.

  8. Gulf People erms will miss out good time in terms of development phase construction. In the long run, there will not be any spin offs, most employees to this project will be all based in POM. The processing site in Purari will only cater for very smal number of employees who will all be fly in and out people.

    Hela is a classical example. Roads not sealed, Very good hospitals are only for employees, sourrounded by very high sofiisticated fences. People will be made to wait for royalties and will make EMTVE news room their conference center. So all gulf people stand up and fight together to stop the pipe line to POM. we will all miss good time. We are all going to flood into Port Moresby looking for jobs if we allow this to happen. All Baimuru and Kikori land owners be careful and thing and educate your selves better before you, agree with the PNG government. I undersatnd you want quick payment. When the next payments goes into trust account we are doomed. By then the gas game is on.

    Lets put up better written papers and submissions to oppose this, untill we see win-win situation other wise say NO to the pipe line.


  9. Blasius A Pomah says

    Friends from Gulf, this is not only your concern, its happening evrywhere in our beautiful country Papua New Guinea. The question here is..who is the true person that can come out and stand with the people. This is our resources, our birth right, our blessings from the almighty Father. If I want to be a part of your blessing, than we have to share each burdens and needs eg; basic services and infrastructures are the most important needs anywhere in our country. My simple advice to you my friends from Gulf is; roads, bridges, health centres, and schools, built to a best standard to suit your demand.. this are the priorities. Than you can talk about bigger things…also pls let it be Gulf LNG project.

  10. William Ukia says

    This is serious and future is at stake if nothing is done! The people of Gulf have to Unite and Oppose this even if t means to take this to court. We are talking about employment opportunities and infrastructural development for now and future. See what Hela Province is now after the LNG have being piped to Central province, there’s hasn’t being any major development since then and the Road hasn’t being developed as promised. We act now and oppose this as one people for the benefit of our future generations as well.
    God Bless Gulf Province!

  11. Robert Kimai says

    “What stays in Gulf stays in Gulf and exports out” Gulf owns the resource and Gulf needs tangible development in road infrastructures, health and education. We believe that our resource stays in our province and exports out.

    Gulf people stand up for your rights and protect what you rightly own.

    • Sorry

      You are wrong

      people of gulf don’t own resources

      On day one this resource belonged to the people of PNG

      The government represents the people of PNG

      No one in PNG could develop the resource

      The big companies came in because the government of the PNG people knew that without them the resource couldn’t be developed
      The people of PNG agreed that the big oil companies will develop the resource and in return would make a profit from it
      But the resource is gas plus money and the money and the gas were created by the company not the people sitting out on the gulf

      • Eddie Micky says

        you are right! however we are talking about the development wise where the company will bring to the very own people of the province and we all know that government is made up of people, the grass roots . therefore, there must be a benefits from the company to the people.

  12. Tiawa Kolonga says

    I totally opose the namimg new LNG Project as “Papua LNProject”. The people who name it are so naive about our history. It is Discrimination and Racist at its best and one which promote Secessionist mentality. Our country is Papua New Guinea and not Papua and New Guinea. The project should be called Gulf LNG Project or Kerema LNG Project. The name should be changed. Furthermore, it should be located in the Gulf are or at Kerema to help distribute the wealth and Spinoff business. I fully support the Governor for strongly oposing the proposal to locate the project site to Caution Bay.

    • Joe Lokoloko says

      I want to speak my heart for gulf people,this is our resources. We do not want this second pipeline to central province. This must stay in the gulf province. We leaders of all village in the gulf province will stand to stop this second pipeline to central province.

  13. John Barnabas Susuve says

    I totally disagree with the developers to build the processing facility in the caution bay area. It is the wish of the Land owners and the people of Gulf Province, to process the Oil and Gas in Gulf.

    We stand by this decision to ensure that, all the revenues from this project goes back into the province for infrastructure developments. For too long our Province has been described as ‘ the least developed province. We want to change that in the mindset of the people of Papua New Guinea, and the local Land owners.

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