Papua LNG Project advances toward Final Investment Decision

Feb 12, 2025 | 2025, Blog, News

Papua New Guinea’s ambitious Papua LNG project is moving closer to a Final Investment Decision (FID), with Prime Minister James Marape confirming that significant progress has been made despite economic and logistical challenges.

The multi-billion-dollar Liquefied Natural Gas (LNG) project is led by TotalEnergies, ExxonMobil, and Santos, with operations expected to commence in the coming years. The government remains optimistic that the project will boost Papua New Guinea’s GDP growth, create employment, and enhance the country’s position as a key LNG exporter in the Asia-Pacific region.

“Papua LNG is one of the most significant projects in our economic roadmap, and we are working closely with our partners to ensure that the FID is achieved in 2025,” said Marape, as reported by PNG Business News. “This will bring unprecedented economic benefits, providing jobs and boosting revenue for the government.”

The project, initially delayed due to global energy price fluctuations and rising operational costs, is expected to deliver 5.4 million tonnes per annum of LNG. The gas fields will be developed using an innovative agile LNG production model, reducing environmental impact and operational costs.

Industry analysts believe that the Papua LNG project will play a vital role in addressing Papua New Guinea’s foreign exchange shortages, attracting foreign investments, and bolstering trade relations with energy-importing nations, particularly Japan, China, and South Korea.

Main pic: Representative illustration