Papua New Guinea's Petroleum and Energy Minister says the development of a third major Liquefied Natural Gas project underlines PNG's status as a major global energy player.
William Duma says he is pleased at the recent alliance between Australian company Horizon Oil and Japan's Osaka Gas to develop the Western Province project.
Horizon has made a series of large discoveries and is considering a new gas-export facility on the south coast.
Mr Duma says the entry of Japan's second largest gas company as investor and strategic partner to Horizon reflects the growth of Japanese interest in PNG.
"Yeah, Mitsubishi's there as well. We've also been receiving good indications from Japanese chemical companies with a view to setting up gas chemical plants in the country as well. We've got a favourable fiscal and concessional regime compared to our neighbours so the Japanese... they're not that stupid, they know what they're doing."