The PNG Government is committed to advancing the Papua LNG project, with Prime Minister James Marape confirming that final investment decision (FID) is expected by the end of the year.
Addressing recent delays in the project, Marape said cost escalations had necessitated a review of engineering, procurement, and construction contracts to align with financial expectations.
“The initial construction cost estimate for Papua LNG was $US12 billion, but tenders came back at $US18 billion, which has prompted the project developers to re-evaluate and optimise costs before proceeding to FID,” he said.
TotalEnergies and ExxonMobil also remain committed to progressing the project.
The Papua LNG project is expected to generate significant employment opportunities in the next six to seven years as construction progresses.
“Papua LNG will create a multi-year economic stimulus, driving investment in infrastructure and services,” Marape said.
“We are ensuring that P’nyang and other gas projects are carefully sequenced to sustain economic growth, employment, and business opportunities over an extended period.”
In addition to the Papua LNG project, several major resource projects are moving towards development, including the:
- Wafi-Golpu gold and copper project, with final agreement expected in 2025
- Pasca A offshore gas project, set to contribute to PNG’s LNG portfolio
- P’nyang gas project – following Papua LNG to ensure long-term energy sector expansion.
“We are in a strong position for economic growth, and I encourage our financial institutions, superannuation funds, and private sector players to align with these developments,” Marape said.
“We must ensure that Papua New Guineans are at the forefront of these opportunities.”
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