PNG government prioritises larger LNG projects

PNG LNG sending out an LNG cargo. (Santos)

Small-scale opportunities for LNG in Papua New Guinea (PNG) are still struggling with an opaque regulatory regime, while large-scale projects appear to be the government’s preferred option to develop the country’s plentiful gas reserves. This is despite PNG being well located to deliver small-volume, flexible LNG cargoes to emerging buyers in Southeast Asia.

The PNG government signed a memorandum of understanding (MOU) this week with the Papua LNG consortium, which comprises France’s Total and PNG-based Oil Search. The move is a step forward in the development...