Prime Minister James Marape says the Final Investment Decision (FID) for the Papua LNG project is expected to be announced this year following assurances from TotalEnergies.
Prime Minister Marape made the announcement at Melanesian House in Port Moresby city yesterday after returning from a bilateral meeting with French President Emmanuel Macron last week.
The Prime Minister said the Government is now preparing for the project’s Development Forum, which is expected to begin between late June and early July 2026. The forum will involve local landowners, the Gulf Provincial Government, and Central Province stakeholders as part of the project consultation process.
Prime Minister Marape confirmed that he met directly with TotalEnergies Chief Executive Officer (CEO) Patrick Pouyanne, who assured him that Papua LNG remains a priority project and would proceed.
The Prime Minister urged project partners TotalEnergies, ExxonMobil, and Santos to resolve any internal issues and provide a united position to the State to ensure the 2026 timeline is achieved.
Although Papua LNG is significantly smaller than some of the major projects operated by TotalEnergies and ExxonMobil overseas, Mr. Marape stressed that the development remains critically important to Papua New Guinea’s economy and future growth.
He said the project has undergone major cost reviews to improve commercial viability. The original development cost was estimated at around US$18 billion, but after further assessment and a secondary bidding process, the projected cost was reduced to approximately US$14 billion.
Prime Minister Marape said the Government had rejected calls for free concessions or additional incentives, maintaining what he described as a balanced “give-and-take” approach aimed at protecting the State’s share in the project. However, he added that the Government remains open to providing technical support where necessary.
The Prime Minister also reassured the public that the key structure of the Papua LNG Gas Agreement signed in 2019 remains unchanged despite disruptions caused by the COVID-19 pandemic.
The original agreement was signed in April 2019 under the former O’Neill Government. Following the change in government later that year, the Marape-Steven administration reviewed the agreement in an effort to secure greater benefits for Papua New Guinea, including improved returns for landowners and provincial governments.
After negotiations with TotalEnergies, the agreement was validated later in 2019 while retaining its core framework.
Mr. Marape said TotalEnergies remains committed to the project but reminded the developers that time is limited, and the State expects the project to move forward within the agreed timeframe.
