PNG military to protect ExxonMobil’s $19 billion LNG project

The Papua New Guinea Government has announced it will deploy the military near the ExxonMobil-operated $19 billion PNG LNG project due to what it says rising tensions between tribes in Hela province in the highlands.

PNG’s Cabinet has approved a call-out of the Papua New Guinea Defence Force (PNGDF) to support Police to conduct security operations in Hela.

There is also an ongoing dispute between landowners and the PNG government over unpaid royalties from the giant PNG LNG project. Landowners have protested several times over the LNG royalties and equity in the project.

PNG’s Prime Minister, Peter O’Neill, said in a statement that “internal disputes are impacting on law and order in the province.”

“These problems have the potential to impact on the upcoming election as well as the operation of important projects in the area.”

According to O’Neill, “Police will have full powers to ensure law and order and to deal with people who seek to cause trouble.”

“This includes the immediate arrest of people seeking to initiate violent acts or make threats against Government officials or projects in the province.”

O’Neill said that the government will consult with the PNG LNG partners, ExxonMobil and Oil Search, to “provide logistical support to supplement the security operation.”

ExxonMobil owns 41.6% percent in the project while Oil Search holds a 29 percent interest in PNG LNG, partly located in the Highlands region of Papua New Guinea. The project includes a gas conditioning plant in Hides and liquefaction and storage facilities near Port Moresby with a capacity of 6.9 million tonnes per year.

The LNG project commenced production in April 2014 and since then it has delivered more than 250 cargoes of the chilled fuel.

LNG World News Staff