Papua New Guinea faces project deadline
Papua New Guinea’s investment community is focused on the Papua LNG project, which is nearing a final investment decision. The project is expected to cost around US$14.5 billion.
Last year, key players, including Prime Minister James Marape and Kevin Gallagher, CEO of Santos, said a final investment decision could be achieved in early 2026.
However, the deadline has been pushed back, and a revised gas agreement was signed in August, with a drop-dead deadline of December 15, 2026, for the final investment decision.
Project Developments
TotalEnergies has transferred operatorship of Papua LNG to ExxonMobil, which operates PNG LNG. Prime Minister Marape is bullish about the project, saying the final investment decision is “bound to happen later this year.”
The government is working towards a final investment decision by December 15, but project shareholders may strive to reach it earlier.
Other projects, such as Twinza’s Pasca A offshore gas project, are also progressing towards final investment decisions.
Other Projects in the Pipeline
Santos has reached a final investment decision on two projects: the Agogo Production Facility tie-in and an infill drilling campaign at PNG LNG.
ExxonMobil plans to commence its P’nyang gas project after Papua LNG’s four-year construction phase.
Not all projects are progressing at the same speed, however. The estimated US$5.4 billion Wafi-Golpu copper-gold project has stalled, with Newmont and Harmony Gold still in talks with the State Negotiating Team.
Challenges and Risks
The Wafi-Golpu project is “fairly far out still” for Newmont, according to CEO Natascha Viljoen. Harmony Gold CEO Beyers Kruger also said the project is in the permitting process.
Another copper project, the proposed restart of the Panguna mine in Bougainville, has seen developments, with the mining lease being transferred to Bougainville Minerals Limited.
Papua New Guinea’s greylisting by the Financial Action Task Force (FATF) in February 2026 could pose risks to project financing, according to the World Bank.
The World Bank notes that greylisting can increase due-diligence requirements for correspondent banks, potentially raising the cost and complexity of cross-border financial transactions.
The PNG Government has endorsed a FATF Action Plan with reporting milestones running through to January 2028.
