PNG landowners threaten to shut down LNG project

6:34 pm on 20 July 2015

A major liquefied natural gas project in Papua New Guinea is set to be disrupted this week after angry landowners say they will enforce a threat if demands are not met.

Hela province, Papua New Guinea.

Hela province, Papua New Guinea. Photo: RNZI / Johnny Blades

The 19 billion US dollar project, whose gas fields are in Hela province, is being developed by ExxonMobil PNG Ltd, which received a 21-point list of demands two weeks ago.

The company says it has fulfilled its obligations and the landowners need to pursue their claims with the government.

The Post Courier newspaper reports the prime minister, Peter O'Neill, has promised all landowners' royalties will be honoured and paid.

However, on Friday, the landowners held a press conference and told media they will shut the operations down this Wednesday if the demands are not met.

Among the list of demands, they are calling on the government to deliver the 10.6 million US dollars in outstanding business development grants for the province.