19 Jan 2011

Developers losing millions as PNG project stalls

6:27 pm on 19 January 2011

Landowners who feel they are losing out on business spin-offs associated with the liquefied natural gas project in Papua New Guinea have disrupted work on the multi-billion dollar project.

About 1,000 landowners have staged a peaceful sit-in at the entrance of the proposed LNG conditioning plant site at Para village.

Our correspondent, Jonathan Tannos, says landowners from the Hides area haven't seen any of the business development grants that were promised.

He says for every day that the project is stalled it costs the developers millions of dollars, adding that the landowners are potentially hurting themselves.

"If you close the project down for that long you also lose out on the benefits. Sometimes it's a catch-22 situation for the landowners themselves because every single day they themselves lose money as well."

Jonathan Tannos says the Government is attempting to negotiate with landowners.