Somare-Temu Government Praised for Commitment to LNG

The Managing Director of Petromin Joshua Kalinoe has praised the Somare-Temu Government for its allocation of K500 million in the Supplementary Budget to the development of Liquefied Natural Gas (LNG) projects in the country.
Mr Kalinoe said the Somare-Temu government must be congratulated for passing a well thought out and strategic supplementary budget.
“The Government’s stable and outcome driven macroeconomic policies have contributed to the steady growth of the national economy, creating more jobs and opportunities for Papua New Guineans. As in other sectors, the allocation of K500 million for LNG projects by the Government shows the State’s commitment to developing an LNG business in PNG.”
Mr Kalinoe said the State’s commitment bolsters investor confidence in the energy and resources sector in PNG.
He said Petromin as the State’s vehicle for commercializing the State’s interest in LNG projects will be working on a equity financing strategy in consultation with the State to exercise the State’s back in rights in any LNG projects..
“The K500 million allocation to the project will go a long way in determining an economically sound debt/equity financing strategy to facilitate the State’s participation in the development of LNG projects in the country,” Mr Kalinoe said.
The previous Somare-Polye Government made a conscious decision to steer the country away from the ‘resource curse’ and established Petromin PNG Holdings as a commercial vehicle to maximize ownership and fiscal gains for all Papua New Guineans.
In continuing with this agenda, the Somare-Temu Government through the allocation in the supplementary budget has shown its commitment to a more proactive role in the resource sector, especially in LNG development.
The LNG world market has shown strong growth in recent years fueled by demand from emerging economies particularly in the Asian region.
At the same time, Papua New Guinea occupies a strategic position close to the world’s leading importers of LNG which are Japan, South Korea and China.