Papua LNG project faces renewed push for approval in Papua New Guinea

Global oil and gas companies are pressing to advance the long-delayed Papua LNG project in Papua New Guinea's Gulf Province, with one government minister saying it could be approved by the end of the year. The project would tap the Elk-Antelope gas field and build a 320-kilometre pipeline to move gas to a liquefaction facility. If completed, it is expected to produce more than 5 million tons of LNG a year.

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The renewed momentum comes after years of delays linked to political upheaval, cost blowouts, design changes, investor uncertainty and disputes with landowners. The field, discovered in 2006, is described as holding the energy equivalent of more than 1 billion barrels of oil, with a value put at more than $70 billion. The project is led by TotalEnergies, with ExxonMobil and Santos also holding significant stakes.

The Papua New Guinean government has been seeking new resource investment as it tries to get major projects moving. That pressure has increased as global energy buyers look for alternative LNG supplies, following disruptions in the Middle East. The article notes that Iranian missile strikes on facilities in Qatar, which supplies about a fifth of the world's LNG, have raised concerns about longer-term supply stability.

Papua LNG has been discussed for years as one of the country's most significant undeveloped gas projects. Its scale makes it important not only for Papua New Guinea's economy, but also for regional energy markets. The project's backers have been trying to secure financing and commercial support at a time when long-term supply agreements have become more important to investors.

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The latest push also reflects a shift from the more cautious mood seen less than a year ago, when analysts viewed the project as financially risky because of a possible LNG glut. Since then, tighter global supply conditions have improved the outlook for new projects. Economist Stephen Howes of the Australian National University's Development Policy Centre said the disruption in global LNG markets could give Papua LNG the boost it needs.

At the same time, the project still faces several hurdles before any final approval. The reporting says experts and industry insiders believe it must clear a number of remaining obstacles, although it does not specify which ones are now most pressing. The government's desire for investment, the companies' commercial interests and the unresolved project risks all remain in play.

For Papua New Guinea, the outcome will be watched closely because the project has already been delayed for years and has become a test of whether the country can turn large resource deposits into production. For the companies involved, approval would open the way to one of the region's biggest LNG developments. What remains unclear is whether the project can secure the necessary backing and resolve outstanding issues before the end-of-year target.

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