PNG landowners shut down the LNG project with ‘no hope’ to negotiate

By Peter S. Kinjap in Port Moresby

Disgruntled landowners of the Papua New Guinea LNG (liquefied natural gas) Project have given notice to ExxonMobil at Hides 04 gas conditioning plant site in Hela province for the government to respond within seven days over payment of outstanding royalties and equity.

Landowner groups claim the government has not paid them for 20 shipments of LNG exports and are awaiting the amount they say is due.

The lapse of seven days without a good response would mean otherwise to shut down the entire LNG operations if nothing is done.

In the meantime, Hides 04 gas conditioning plant main gates have been forcefully locked down by landowners preventing ExxonMobil from its operations.

ExxonMobil are the operators of the PNG LNP Project.

A warning has been directed to ExxonMobil to shut down immediately.

The group have cut down trees to block off the roads and stop the movement of vehicles to the project site.

A chief in Komo in the Hela province, who wants to remain anonymous, said he warned police that they are fully armed and stand ready to confront any security personal that comes around.

They have built a shell house and told ExxonMobil that the gate will not open until the PM arrives with the money they are owed.