16 Mar 2010

PNG National Gas Corporation chair says LNG development is flawed

10:03 am on 16 March 2010

The chairman of Papua New Guinea's National Gas Corporation says the Liquified Natural Gas development is deeply flawed due to the non-participation of genuine landowners.

Alfred Kaiabe says dozens of landowners whose land is to be involved in the massive LNG project still haven't agreed to the development.

His comment comes as the project's main developer Exxon Mobil announced that financing arrangements for the multi-billion dollar project have been completed, allowing it to proceed.

But Mr Kaiabe warns that because key issues remain unresolved, the project has the potential to trigger a backlash from landowners within a decade.

"Because their young sons and daughters who are now in school will arise. And I am already seeing another Bougainville over this project unless we raise and address the fundamental issue of landownership and right benefits owing through the right people."

Alfred Kaiabe.