PNG landowner calls for LNG funds

4:36 pm on 8 September 2017

One of the chief landowners in Papua New Guinea's Hela province has warned the non-payment of royalities could again lead to disruption to LNG sites in the area.

Hela landowners meet with Mineral Resources Development Company officials in Papua New Guinea.

Hela landowners meet with Mineral Resources Development Company officials in Papua New Guinea. Photo: Supplied

Larry Andagali said local landowners had seen no benefits from the LNG resource and discontent was growing.

He estimated they were owed $US62 million in royalties and equity worth the same amount as per prior agreements.

Mr Andagali said the funds were in trusts and could not be released until the government identified landowners and clans in the licensed areas.

So he has called on them to do so immediately.

Mr Andagali said if no money was made available by Christmas there could be issues similar to the past.

"I'm an educated leader and I don't want to speak for what the ordinary people will do. They have shut down the project last year and it was a big loss, big destruction and we had to go back and open it again. I don't want to speak for them but it's not going to be good."

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