Papua New Guinea

In late August the government and the Papua LNG developers signed a revised gas agreement. It offers about US$1.95 billion in conditional incentives, which only apply if LNG prices fall below a set level after 2031/32, and lets the state raise its potential stake from 22.5% to 25%. The agreement sets 15 December as the 'drop-dead' deadline for a final investment decision, a firm test of whether the country's largest pending investment goes ahead.

Business Advantage PNG · 2026-09-01

On 7 September TotalEnergies reported several milestones for Papua LNG. Engineering, procurement and construction (EPC) tendering is complete, with capital cost cut to about US$14 billion. Operatorship will move to ExxonMobil, operator of the existing PNG LNG project, and TotalEnergies will sell a 9.1% interest to its partners and keep 20%. TotalEnergies and state-owned Kumul Petroleum also set up a marketing joint venture for 2.4 Mtpa of the project's 5.6 Mtpa output; for contractors and suppliers, this moves the project close to procurement.

TotalEnergies · 2026-09-07

During UN General Assembly week, Prime Minister James Marape pitched Papua New Guinea to US executives and investors at a New York business roundtable. He presented the country as a free-market partner and a gateway to Asian markets, and pointed to investment incentives. The message signals that the government wants to move the relationship from aid towards trade and investment, and is open to US capital in resources and new sectors.

Papua New Guinea Today (PNGFacts) · 2026-09-28

The government is aiming to get Papua New Guinea off the FATF 'grey list' (the global anti-money-laundering watchdog's list of countries under increased monitoring) by 2028. That means grey-list status will remain for at least the next two years. Until then, foreign firms should plan for slower correspondent banking, more customer due-diligence checks and longer cross-border payment times.

Concord Review · 2026-10-01

Treasurer Ian Ling-Stuckey's September supplementary budget added K1.33 billion in spending. It extends the K1.11 billion fuel subsidy, which holds pump prices at March 2026 levels, until at least December, and keeps the temporary GST exemption on some essential household goods to year-end. For entrants, this keeps short-term pressure off consumer prices, but the money comes at the expense of other government spending and delays the IMF-backed fiscal consolidation path.

Business Advantage PNG · 2026-09-16

The same supplementary budget set aside K1.165 billion to deal with a severe El Niño. Low rainfall is already hitting farm output, mining operations and hydro power generation. Firms in agriculture, resources, or anything that depends on reliable grid power should expect output and input-cost disruption into 2027.

Business Advantage PNG · 2026-09-16

PNG Power has doubled load shedding (rolling, scheduled power cuts) in Port Moresby, blaming El Niño and a technical fault. Businesses in the capital should budget for backup generation and higher operating costs while the drought lasts.

Concord Review · 2026-10-01

Insecurity continued to reach commercial sites. Armed men looted the Finschhafen airstrip project site in Morobe, and seven people were reported killed in a security operation near the Porgera gold mine in Enga. Project operators, especially in the Highlands and Morobe, should plan for meaningful security costs and possible disruption.

Concord Review · 2026-10-01

Preparations for the mid-July 2027 national election have started. The supplementary budget added K150 million for the election, the Prime Minister announced K200 million for election preparations and security, and political parties face tighter registration rules. Writs (the formal start of the election) are due in late April 2027, so entrants should expect policy decisions to slow and security risks to rise from early 2027.

Business Advantage PNG · 2026-10-01