In an exclusive interview with Business Advantage PNG, ratings analyst Rebecca Hrvatin, says PNG’s fiscal imbalances will improve—provided the Papua LNG project continues as planned.
Papua LNG
Operations at Porgera mine will continue while the application for the Special Mining Lease is revised, concerns about the delay in the approval of the Ramu 2 project, and Wafi-Golpu still before court. Your weekly digest of business news.
Papua New Guinea’s Petroleum Minister Kerenga Kua has announced that the National Executive Council (PNG’s cabinet) has ‘in principle’ agreed to ‘stand behind’ the gas agreement signed in April for the US$10 billion (K33.7 billion) Total-led Papua LNG project.
Prime Minister James Marape told the 2nd Speaker’s Investment Summit in Port Moresby last week that the government would move quickly address ‘misunderstandings’ about the US$10 billion Papua LNG project.
Papua New Guinea’s construction industry continues to face challenges, says Frank McQuoid, Chairman of manufacturer Steel Industries. But others say it is on the edge of a boom that will extend beyond the resource sector. David James examines both sides of the story.
The Total-led Papua LNG project looks set to enter its Front End Engineering Design (FEED) phase. It’s a good sign: according to the ANZ’s PNG Economic Outlook, 97 per cent of the gas projects that enter into FEED have a positive final investment decision. David James explores.
Papua New Guinea’s national oil and gas company plan to increase household electrification and encourage growth in remote locations. Its Managing Director, Wapu Sonk, has revealed the company plans to diversify and focus on more downstream activities in order to maintain revenues.
The March Monetary Policy Statement from the Bank of Papua New Guinea has urged the government to rethink the way it negotiates concessions and tax exemptions with new resources projects. Taking a strong position, it points to how previous agreements have been a factor in foreign exchange shortages and adverse trends in government finances.
The Papua New Guinea State has signed the gas agreement for the US$10 billion (K33.7 billion) Papua LNG project with Total, ExxonMobil and Oil Search. The project, which will double PNG’s gas production, represents the second-largest foreign direct investment ever in the country.
The signing of the Papua LNG project deferred, PNG LNG signs Singapore deal, and Minister flags new Mining Act. Your weekly digest of the latest business news.