PNG Government, Partners Sign Fiscal Stability Agreement for P’nyang LNG Project

Additionally, Western Province Governor Taboi Awi Yoto, highlighted the role of ExxonMobil PNG, the Government, and stakeholders, and he emphasised the importance of the province's involvement in the project negotiations.

"This is unprecedented for provincial governments like ours to participate in the negotiation process of such a critical national resource project," the Governor said.

The proposed P'nyang LNG Project is expected to bring LNG by constructing new upstream facilities in Western, connecting it with existing infrastructure. The project is still subject to final investment decisions by the co-venturers.  

The development of the P'nyang LNG Project is to begin after the Papua LNG Project, in support of economic development in PNG.

According to the news report of “The National”, the P'nyang LNG Project would be an independent one, with landowner benefits to be provided under a future benefit-sharing agreement to be negotiated by the State in accordance with the Oil and Gas Act. [1]

“The P'yang field is located within Petroleum Retention License 3, which covers 105,000 acres (425 sq km). The field is estimated to have 4.36 trillion cubic feet of gas.”

“Esso PNG P'nyang Limited operates the licence and together with Ampolex (Papua New Guinea) Limited, these ExxonMobil affiliates have a 49% interest. Affiliates of Santos and JX Nippon have a 38.5% interest and 12.5% interest respectively.”

Looking back in September 2023, Shandro was one of the speakers at the Petroleum & Energy Conference, Papua New Guinea. She addressed the roadmap of the country’s bright LNG future.

 “Operating in Papua New Guinea is a privilege, and we are guided by our belief that the benefits associated with resource development should be shared by the people of this country.”

“As the single largest business investment in the country, PNG LNG has helped forge a new industry that now directly and indirectly employs thousands of Papua New Guineans. In addition, since first gas in 2014, PNG LNG has delivered over 22-billion-kina to the State and its landowners through various tax and royalty streams.”

“We credit robust collaboration will all levels of government, landowners, landowner companies, local businesses, and peers for the success of PNG LNG and Papua New Guinea’s growing LNG industry. Having a strong National Content program underpinned by workforce development, supplier development and strategic community investment ensures our presence positively impacts Papua New Guineans by equipping them with the skills needed to enhance their lives, as well as their future.”

In conclusion, Shandro said, “When we work together, it is truly awe-inspiring to imagine what the potential collective benefit of LNG developments could be for Papua New Guinea and its people.” [3]