Prime Minister Hon. James Marape has commended Landowners and Stakeholders of the Papua LNG Project for their unity and commitment towards advancing the multibillion-kina development, assuring them that their Revenue Entitlements will remain protected as Papua New Guinea prepares for another major phase of economic growth.
Prime Minister Marape made these remarks at Parliament House today during a gathering and historic group photograph with approximately 800 Papua LNG Landowner Representatives from various Provinces and Project Impact Areas, including Gulf and Central Provinces. The occasion brought together Traditional Landowners, Provincial Leaders, Members of Parliament, Project Developers and other stakeholders, demonstrating their collective commitment towards progressing the Project. Joining the Prime Minister was former Kairuku-Hiri MP and former Minister for Petroleum and Energy, Sir Moi Avei, whose contribution towards establishing PNG’s LNG industry was acknowledged.
Also present were Finance Minister and Kerema MP Hon. Thomas Opa, Minister for Provincial and Local Level Government Affairs and Kikori MP Hon. Soroi Eoe, Hiri-Koiari MP Hon. Keith Iduhu, Project Developer Executives and other stakeholders. Prime Minister Marape acknowledged the historical contributions of Sir Moi Avei and the Late Grand Chief Sir Michael Somare towards establishing PNG LNG Project, recalling his own involvement as a Cabinet Minister during that period.
“There is no one champion; all of us are champions in this work,” Prime Minister Marape said, as he was introduced at the occasion as the champion behind Papua LNG Project.
“There are some things we can win, some things we must lose, so we win in the big picture for our children into the future.”
He described Papua LNG as a monumental Project that would build upon PNG LNG and establish important synergies for future developments, including P’nyang LNG.
“This is a monumental Project. We want to win from Construction Dollars, as well as Production Dollars. Two different Dollars,” he said.
The Prime Minister said Papua LNG represented approximately US$14.5 billion, equivalent to around K70 billion, in anticipated Investment, with Construction activities expected to generate employment, business opportunities and additional Government revenue. He expressed hope that Construction activities could commence from mid-December, with major development continuing towards 2029-2030.
PM CLARIFIES PNG LNG REVENUE DEFERRAL AND PROTECTION OF LANDOWNER BENEFITS
Prime Minister Marape clarified that while certain State Petroleum Tax Earnings from PNG LNG would be deferred or forgone because of Project synergies with Papua LNG, Landowner and Provincial Government Revenue Entitlements would not be affected.
He explained that approximately K5 billion in PNG LNG Petroleum Tax Revenue between 2029 and 2032 would be forgone as a result of the development arrangements. However, he said this related to Depreciation Costs associated with Papua LNG that would otherwise have taken effect from 2033.
The Prime Minister emphasised that the arrangement must be understood within the broader economic benefits anticipated from the K70 billion Construction Phase. He said that by the time these Petroleum Tax adjustments occurred, Construction Expenditure would already be generating significant economic activity, enabling the State to collect additional Revenue through other forms of Taxation.
“In everything we do, in our negotiations with Total and Exxon Mobil, we have never compromised Landowner and Provincial Government Revenue,” Prime Minister Marape said.
He stressed that the Government’s approach was to balance immediate State Revenue considerations against longer-term economic opportunities, while safeguarding the interests of Resource Owners and Host Provinces.
GOVERNMENT COMMITTED TO LANDOWNER BENEFITS AND INFRASTRUCTURE
Prime Minister Marape acknowledged the cooperation between Gulf and Central Province Landowners, including their Agreement on an 80-20 Benefit-Sharing Arrangement, describing it as reflecting their respective contributions and participation.
He said the Government would continue engaging Landowners through Tier 2 Consultations, including discussions on Business Development Grants, Infrastructure Development Grants and Infrastructure Tax Credit Projects. Business Development Grants would be considered beginning with the 2027 National Budget, alongside longer-term Infrastructure initiatives.
The Prime Minister stressed that resource-rich communities, particularly those in Gulf Province and the Hiri and Motu-Koita areas of Central Province, must experience tangible improvements in their living standards. He said communities hosting major Resource Developments should not remain bystanders while the nation benefited from their resources.
Prime Minister Marape also highlighted the longstanding cultural and trading relationships between Gulf and Central Province communities, saying Papua LNG provided an opportunity to strengthen these connections through modern economic development. He thanked Landowners, Provincial Governments, Developers and Leaders for their patience, cooperation and sacrifices.
“This is about the next 20 years, next 30 years for our children. Thank you for investing in your children’s future,” Prime Minister Marape said.
He reiterated the Government’s commitment to progressing Papua LNG while ensuring its Benefits contribute to improved livelihoods, economic opportunities and Papua New Guinea’s long-term development.