In 2010, Exxon-Mobils subsidiary Esso Highlands started the construction of the PNG LNG (Papua New Guinea Liquefied Natural Gas), a US $19 billion project aiming to produce and export 6.9 million tons of natural gas per year over a period of 30 years. The project integrates gas production and processing in the Southern Highlands and Western Provinces, mainly in Kutubu and Tari districts, and the subsequent liquefaction and storage at Port Moresby on the Gulf of Papua to be sent to foreign hungry Asian markets mainly in China, Taiwan and Japan. The project is currently at the preparatory stages with the company currently developing the infrastructure to extract and transport the gas. The construction of the pipeline will stretch around 700 kilometers (248 km onshore and 407 km offshore), connecting the provinces to the port. The project is estimated to obtain $ 20 billion in revenues during the first year of extraction in 2014, coming from 200 million barrels of liquefied gas. Yet one year in the PNG LNG project has already been linked with a number of worrying incidents, including tribal conflict, local landowner unrest, alleged abuses by the companies involved, and concerns over the transparency of government decisions. In Feb. 2011 the project reached a boiling point when landowners closed down gas plants and mobilised on project sites following increased discontent over their benefits payments. Land-related violence between 2 communities as a result of the project caused four deaths in January 2010. Another work stoppage in January 2011 was led by an angry group of landowners who mobilised when a local boy lost his life after consuming a toxic substance obtained from one of the project sites. Locals have also reported feeling the effects of inflation on PNG’s economy, with prices for basic staples being distorted by extreme inflation. The Ex-Im Bank estimates that PNG LNG will emit 3, 100, 000 tons of CO2 every year in direct emissions, yet even this figure omits the much greater indirect (lifecycle) emissions associated with LNG schemes. Finally, activists claim that the projects Environmental Impact Statement (EIS) and Social Impact Assessment (SIA) are grossly inadequate and fail to address the environmental and social impacts and provide appropriate mitigation measures.
The most affected population will be the Huli people.
UPDATE 2022 - Papua LNG (TotalEnergies)
In 2019 Total SA, now TotalEnergies, and the PNG government inked an agreement to develop a new project called Papua LNG to exploit the Elk and Antelope gas fields in Baimuru, Gulf Province, the traditional lands of Pawaian people. The extracted gas is to be transported via a pipeline to the existing PNG LNG terminal near Port Moresby, where a third liquefaction train would be added to accommodate the increased capacity. The operator of the project is TotalEnergies through its Total E&P PNG subsidiary (31.1%), other partners are ExxonMobil (28.7%), Papua New Guinea government (22.5%) and Santos Limited (17.7%) [1].
Like the PNG LNG project this new extractivist development is ridden with promises of local economic development, which are welcomed by some in the community but resisted by other landowners demanding to receive a fair part of the benefits of the project. These landowners have threatened to block the wellheads and shut-down operations. Additionally, the landowners accuse the french company of adopting "divide and rule tactics" [2].
The government is totally on the side of the multinational and it has urged claimants not to protest. "As leaders of that community, they needed to be wary of the words they use and the actions they take, because the project is going to be there for the long term..." said the Minister for Petroleum, Krenenga Kua [2].
Local villagers accuse the national political leaders to rip the benefits of the country's resources and denounce they have not been informed of the project planned in their lands. There is also a confusing process to vet which clans are the rightful owners of the land, as traditional ownership regimes clash with a western-imposed conception of property [3].
The haphazard process of stablishing who and by how much benefits from the new wave of gas extractivism has caused political turmoil at the highest spheres of government, leading to the resignation of the finance minister two days after the signing of the deal, who ultimately forged an aliance with the opposition to force a change of government and become the new prime minister two months later [2][3].
Citing concerns of the failed benefit sharing scheme conflict with PNG LNG project in Southern Highlands, Chief Solomon Lae from Kapai Aikavalavi village said "Our people in this country, they never learn from the previous experiences. Southern Highlanders are waiting ten years and are yet to receive royalties. The leaders of this country, they're elected to represent our people. But that is never the case. They're milking us. Daylight robbery." [3]
At the moment of publishing this update TotalEnergies was pushing forward with the project with the first phase of front-end engineering and design (FEED) [4].
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