Prime Minister Hon. James Marape announced recently that the “transformational” PNG LNG Project has brought in K26.3 billion in economic benefits to Papua New Guinea since the export of the first gas in 2014. He made the announcement at the Hilton Hotel in Port Moresby while addressing a dinner commemorating the 10th anniversary of the PNG LNG Project.
Prime Minister Marape thanked project developer Exxon Mobil for having faith in PNG since 2008 when it started work on the project up to the export of the first gas in 2014, up until today. He also appreciated all joint venture partners, including Kumul Petroleum Holdings Ltd (KPHL), Santos Ltd, JX Nippon Oil & Gas Exploration Company, and Mineral Resources Development Company (MRDC).
He also thanked all landowners for allowing the project to proceed on their land and acknowledged leaders, including the late former Prime Minister Sir Michael Somare and the late Hela Governor Anderson Agiru, for their vision and foresight.
“The PNG LNG Project is a transformational project. The National Alliance Government of the late former Prime Minister, Sir Michael Somare, must be commended for having the foresight in 2008 to start this project,” Prime Minister Marape said.
“The total value of economic benefits to the country since first production started 10 years ago is K26.3 billion. This includes K1.3 billion for landowner royalties, K1.26 billion in development levies, 2 per cent equity for landowners plus distribution to Mineral Resources Development Company of K1.9 billion, K9.6 billion to Kumul Petroleum Holdings for 16.5 per cent equity, and total tax of K12 billion.
“As of today, after 1069 cargoes, we have received in the country K26.3 billion.
“The economy has grown from under K25 billion in 2008 to K79 billion in 2019 when I took office, to K113 billion now.
“This project was the impetus for the growth of the economy.”
Prime Minister Marape noted that companies, both large and small, have benefited from the PNG LNG Project since its inception. He added that when the project started in 2008, there were many critics and sceptics, who have now been proven wrong.
