Prime Minister Hon. James Marape has confirmed that the PNG LNG Project has fully retired its bank-financed debt six months ahead of schedule, marking a major milestone in Papua New Guinea’s economic history and reaffirming the country’s credibility as a destination for large-scale global investment.
Speaking during a site visit to the LNG facilities on Sunday, 28 December 2025, Prime Minister Marape said the early retirement of the project’s debt represents the culmination of more than a decade of disciplined project delivery, sound governance, and sustained international confidence in Papua New Guinea.
The Prime Minister said the PNG LNG Project’s construction cost of approximately US$14 billion, together with around US$2 billion in interest — bringing total bank obligations to about US$16 billion — has now been fully repaid.
“This complex project, which involved five provinces and more than 60,000 landowners, delivered first gas on time, operated consistently for more than a decade, and has now officially retired its total bank-financed debt earlier than scheduled,” Prime Minister Marape said.
“That is a world-class achievement by any measure, particularly for a developing economy.”
Tribute to Sir Michael Somare’s Foundational Leadership
Prime Minister Marape paid tribute to the late Grand Chief Sir Michael Thomas Somare, acknowledging that the PNG LNG Project was conceived, negotiated and progressed under his leadership.“I served in Sir Michael Somare’s Cabinet from 2008 to 2011, during the critical period when this project was advanced from concept to Final Investment Decision,” he said.
“It was under his leadership that the political will, policy certainty and national consensus were established to move this project forward.”
He recalled that the Final Investment Decision was announced on 8 December 2009, following the successful execution of key project agreements, including landowner agreements in Petroleum Development Licence (PDL) areas PDL1, PDL7 and PDL8, which straddle his electorate.
“When construction was to begin in 2010, I played a role in ensuring landowners in those licence areas came together to sign onto the project so that ExxonMobil could proceed with confidence,” he said.
“That cooperation was critical in moving the project from paper to reality.”
From Concept to First Gas and Sustained Production
Prime Minister Marape said the project’s delivery timeline stands as a benchmark for large-scale resource development.
“From concept to construction, to first gas in 2014, and then consistent production through to 2025, PNG LNG has delivered reliably for the country,” he said.
He noted that the project has continued to operate successfully despite natural challenges and human pressures in and around project areas, demonstrating strong operational resilience and sound management.
Financed During a Global Financial Crisis
The Prime Minister highlighted that PNG LNG was financed during one of the most difficult periods in modern global economic history — the 2008 global financial crisis.
“At that time, a consortium of 19 international banks from Europe, Asia, North America and Australasia came together to finance this project,” he said.
“They collectively raised US$14 billion in bank financing at a time when capital was scarce and global confidence was low.”
He emphasised that Papua New Guinea’s economy at the time was comparatively small, estimated at K26 to K30 billion, making the scale of the financing unprecedented.
“Yet ExxonMobil, as lead project partner, trusted the word of the Government, trusted our agreements, trusted our democratic processes, and moved decisively from project concept to project reality in less than six years,” Prime Minister Marape said.
“That trust has been vindicated.”
A Debt-Free, World-Class National Asset
With all bank debt now retired, Prime Minister Marape said PNG LNG today stands as a fully unencumbered national asset.
“PNG LNG is now debt-free. It is a free-standing, world-class asset for the country,” he said.
“This fundamentally strengthens Papua New Guinea’s economic position and our standing with international investors.”
He said the project has already generated more than K33 billion in economic benefits for government, landowners and the wider economy, including revenues, royalties, equity returns, employment, business opportunities and foreign exchange inflows.
A Monumental and Transformational Project
Prime Minister Marape acknowledged the collective leadership that ensured the project’s delivery, including the late Grand Chief Hon. Sir Michael Somare, the late Governor Hon. Anderson Agiru, and key ministers at the time, including Hon. Arthur Somare, Hon. William Duma, Hon. Patrick Pruaitch and others.
“There was a shared understanding that this project had to be delivered through an express-lane approach for the benefit of the nation,” he said.
“Looking back today, PNG LNG remains a monumental and economically transformational project for Papua New Guinea.
“It is a wonderful story — one that shows the world that PNG can deliver projects of global scale, withstand challenges, honour its commitments, and succeed.”
Prime Minister Marape thanked all stakeholders, including landowners, for their enduring support and reaffirmed the Government’s commitment to retire all remaining State obligations under the PNG LNG Agreement by the first half of next year.