The Gulf provincial government in Papua New Guinea says it will sue the State and the developer of the liquefied natural gas project, ExxonMobil, for more than two billion US dollars.
The provincial government says it's acting over failings in an Environmental Impact Study on the areas directly affected by the project.
The Post Courier newspaper reports the Gulf Governor, Havila Kavo, saying the study, funded by the developer, didn't take account of the negative impact of the project on his people.
Of particular concern, he says, is the destruction of the marine life in the Kikori River and along the Gulf coastline.
The project intends to build a pipeline from Southern Highlands to the Gulf coast and from there to Port Moresby.