The Papua New Guinea government and Twinza Oil have formalized their commitment to the Pasca A offshore gas project, marking a significant advancement in Papua New Guinea’s energy sector. The agreement, signed at Government House in December 2024, sets the stage for the nation’s first offshore petroleum development, located approximately 95 kilometres from the Gulf Province coastline. The Pasca A gas-condensate field is set to be developed in two phases, focusing first on the production of natural gas liquids, including condensate and liquefied petroleum gas (LPG), followed by the export of liquefied natural gas (LNG) via a floating LNG facility. This phased approach is designed to optimise safety, expedite revenue generation, and ensure cost efficiency.
The project is expected to generate over K500 million annually for the state and boost the country’s Gross Domestic Product (GDP) by approximately K30 billion. Additionally, the development is projected to create around 500 permanent jobs, significantly contributing to local employment and economic growth. A notable feature of the agreement is the participation of the Mineral Resources Development Company (MRDC), which has secured up to a 50% interest in the project. This partnership ensures substantial local involvement and aligns with the government’s objective to retain a larger share of economic benefits from resource projects. Prime Minister James Marape highlighted the importance of this initiative, that is in line with PNG’s goal to secure a 70 per cent share of the project’s economic returns.
Twinza Oil has completed environmental impact assessments and obtained the necessary permits for operations. Social mapping and landowner identification studies have also been finalised, ensuring the project adheres to environmental standards and considers the interests of local communities. The Pasca A project is expected to enhance PNG’s energy security, increase its presence in global energy markets, and serve as a catalyst for further exploration and development in the Gulf of Papua region.
With the gas agreement in place, the project is poised to commence the Front-End Engineering Design (FEED) phase, followed by a Final Investment Decision (FID). First production is targeted for 2028, marking the beginning of a new chapter in PNG’s energy sector. The partnership between Papua New Guinea and Twinza Oil signifies a transformative development, promising substantial economic benefits, enhanced local participation, and strategic growth in the offshore petroleum industry.
—
The main picture is a representative image.
