PNG LNG project to meet target, regardless

Updated September 3, 2010 17:10:18

The Papua New Guinea government says early work on the country's multi-billion dollar Liquefied Natural Gas project is progressing well and on target. The statement followed accusations from the PNG Opposition that the government has not addressed outstanding landowner issues which could disrupt the project.

Presenter: Firmin Nanol
Speakers: Authur Somare, PNG's State Enterprises Minister; Paul Tiensten, PNG's National Planning Minister

NANOL: The PNG LNG Gas project is by far the largest project ever under taken in Papua New Guinea since Independence.

The developers plan to pipe gas from the PNG Highlands down to a processing plant outside the capital Port Moresby.

Early construction work has already started at the major gas condensation and processing plants in the Southern Highlands Province.

But certain landowners affected by the project have prevented these construction work over claims they missed out on spin-off businesses.

The Opposition has accused PNG's State Enterprises Minister, Authur Somare of single handedly bulldozing the LNG gas agreement without proper landowner consultations.

It accused him of getting kick-backs and says the project will not proceed.

But Authur Somare has hit back at the Opposition saying the project will boost PNG's economy.

Mr Somare says the project is going full steam ahead to meet its target.

SOMARE: The early works are continuing. Just because one challenge comes, it will not disrupt what is of national significance and national importance to the state. This project must go for the benefit of the Papua New Guinea people. Stop it, and what will happen. Too risky.

NANOL: Mr Somare says the Opposition is naive and does not realise the huge benefits the LNG project will bring to the country.

SOMARE: This is truly a world class project. Nothing should distract Papua New Guinea's attention and from this most significant project. And for the Opposition to state this project will stop, but they are predicting is quite simply careless and reckless and this is unfortunate, because everyone right now should be behind this project to make this project go ahead and ensure success on it, because the PNG GDP for this year has projected that three per cent of the 8.5 per cent growth is off the back of this project.

NANOL: He says affected landowners will be paid soon to start their own businesses and work with the developers to get contracts.

SOMARE: We are very close to dealing with the .... capital that the government is injecting in that the government and the landowners have entered into an agreement and it is on the basis of that agreement that that .... capital will go.

NANOL: PNG's National Planning Minister Paul Tiensten says the Opposition's claims that those who negotiated the LNG gas project agreements have received kick-backs, were utter rubbish.

He says the Opposition is only trying to derail the project.

TIENSTEN: Whether or not those of us who have negotiated, we have played a role in negotiation have actually benefited from kickbacks or what we call cut from this project. Now the Opposition or even the media or the people of Papua New Guinea should establish by evidence whether we have actually been paid to come up with the deal which basically they were talking about. I think for us we can categorically deny that those claims because only time will tell.

NANOL: The PNG government and the developers have signed pre-sales agreements with major companies from China, Japan and Taiwan to purchase gas from the PNG LNG project.

The project developers say they plan to have the first gas shipment ready for market overseas by 2014.

Firmin Nanol-Port Moresby.