LNG

PNG LNG faces flak over royalties ahead of expansion

PNG LNG is set for a $12 billion expansion, but a scathing report on its economic benefits could see the state make changes to its fiscal terms PNG LNG is set for a $12 billion expansion, but a scathing report on its economic benefits could see the state make changes to its fiscal terms.
By Sally Bogle 8 May 2018 0 30741
A gas plant in Papua New Guinea. The Hides gas plant in Papua New Guinea. (Oil Search)

The risks of doing business in Papua New Guinea (PNG) have been thrown into sharp relief following publication of a report by anti-poverty research group Jubilee Australia. The report alleged that the local economy has failed to benefit from the ExxonMobil-led $19 billion LNG export project. 

The 7.9 mtpa PNG LNG project is one of the world’s most cost-competitive LNG export facilities. A joint venture of Exxon, Santos, Oil Search and others has been operating it since 2014. 

PNG LNG is set for a...