Long term sustenance key to LNG projects roll-out

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ExxonMobil PNG Andrew Barry. Picture: THE NATIONAL

PORT MORESBY, 10 DECEMBER 2018 (POST COURIER) – The Papua LNG gas agreement negotiations is set to conclude after the first quarter of 2019 and progress of P’nyang gas field set to progress after the Papua project.

ExxonMobil PNG Andrew Barry has said both projects will bring a sustained period of growth, even longer than the success of the PNG LNG project construction period.

He made the comments during last week’s Mining and Petroleum Investment Conference in Sydney Australia.

The construction period of the first PNG LNG project presented some of the highest economic growth levels experienced in the country.

It, however, was followed by a drop in those growth levels following the end of the construction phase. This period could not have come at a worse time as global commodity prices plummeted in 2014 as well.

Barry pointed out that both new projects could mean more for the country considering they will also bring about much needed opportunities not only for the project sites in the respective fields of Elk and P’nyang but also the production facility expansion through plans to double LNG capacity at its Port Moresby facility through 3 additional trains unlocking the Upstream resources of Papua and Pnyang.

“We see two very distinct periods of benefits for the country. One during construction and the other during production. The benefits are different but both important.

“As we reflect on the construction times of PNG LNG, I am sure those who were around can attest to the economic boom that occurred. The project alone generated more than 10,000 local jobs but the multiplying effect was much greater than just that.

“The hotels were full, the airlines were full, ports, restaurants, trucking companies and car hire companies were busy, and taxes to the government flowed from the project and all associated businesses. The GDP growth during 2010 – 2014 averaged 7 per cent of which PNG LNG was a significant contributor. “We now have two more projects ahead of us with Papua and P’nyang with the plan to follow one directly after the other. Creating a long term sustainable economic growth period for the country,” Barry said.

He reiterated the company’s recognition of the challenge that occurred with the PNG LNG project where there was not another significant project that followed directly after. “We are hopeful that with the support of the government and the communities we can improve on this as we go forward.

“Having two projects back to back not only helps with sustainable economic growth but importantly avoids a boom and bust scenario and greatly improves the development of local Papua New Guinean skills and talent which is so critical to the success of the country.”

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