Papua New Guinea starts paying landowners LNG royalties
MELBOURNE (Reuters) — The Papua New Guinea government has started paying local landowners long awaited benefits from the $19 B PNG LNG project, in a promising sign for energy giants ExxonMobil and Total looking to invest billions more in the country.
The PNG liquefied natural gas project, operated by ExxonMobil Corp, has been exporting for more than three years, with a 2% royalty set aside for landowners, but payments had been held up by disputes over who is eligible.
The royalty funds have been held in trust by the government while it vets landowners, a prolonged process that has triggered violent clashes over the past three years and threatened to disrupt PNG LNG operations.
"Important progress has been made with the government of PNG commencing payment of royalties to relevant landowner groups around the PNG LNG Plant near Port Moresby," ExxonMobil PNG said in emailed comments to Reuters on Wednesday.
The PNG prime minister's office, treasury department and Bank of Papua New Guinea did not respond to requests for comment.
Progress on resolving the disputes comes as a relief for ExxonMobil, France's Total SA and their partners who are in talks to invest billions of dollars in new gas fields to double LNG exports from one of the world's lowest cost sites.
The government has made resolution of the landowner issues a priority in a 100-day plan it set out following elections in July.
Peter Botten, managing director of Oil Search, which is also a partner in Total SA's Papua LNG project, told Reuters in August a key hurdle to the companies' plans was getting the government to complete the landowner vetting process.
"This is a really good step toward sorting out benefits payments," an Oil Search spokeswoman said on Wednesday about the government's first payments to landowners.
Identification of those eligible for royalties still needs to be resolved with landowners in the impoverished highlands, where gas is produced and piped to the LNG plant.
Reporting by Sonali Paul; Editing by Joseph Radford
The small-scale GTL (SSGTL) and small-scale LNG (SSLNG) sectors are gaining ground, providing alternative sources of power generation and transportation fuel in remote regions and areas not connected to major gas pipeline routes.
Gas Processing and Hydrocarbon Processing are pleased to announce that as of August 2017, Gas Processing will be distributed along with both Pipeline & Gas Journal and Hydrocarbon Processing.
Novatek, Russia’s largest independent natural gas producer, plans to invest up to $11 B in the large-scale Arctic LNG 2 project. The project involves the construction of an LNG plant on the Gydan Peninsula—a geographical feature of the Siberian coast of the Kara Sea.
ADIP ULTRA: ADIP-X Reimagined
View on Demand
Shell Global Solutions International BV (Shell) is launching the improved process technology ADIP ULTRA, for cost-effective removal of CO2 down to <50ppmv. The ADIP ULTRA process is applicable in gas plants, LNG, pre-NGL, refinery HMUs and gasification syngas.
•Discover how looking back at decades of ADIP and ADIP-X operational experience has led to the cost effective ADIP ULTRA process
•Understand how Shell’s new absorption column internals can further enhance process performance
•Learn how Shell is a reliable partner of choice who helps you get the most out of your unit
•An opportunity to ask questions to Shell’s technical experts
May 9, 2017 9am UTC
View on Demand