PNG Government signs agreement with PNG LNG project partners, UN expects significant economic growth in PNG, and National Petroleum Company to revise annual plan following oil crash. Your weekly digest of the latest business news.

Train 1 at the massive PNG LNG gas plant north-west of Port Moresby. Credit: ExxonMobil

Expansion of the PNG LNG project has moved closer after the signing of a memorandum of understanding (MoU) between the PNG Government and the project partners, led by operator ExxonMobil.

Under the agreement, a final investment decision on a third LNG processing train will be made by the end of 2017, while the project partners will also supply up to 20 million cubic feet of domestic natural gas for 20 years to support plans to improve the capacity and reliability of the country’s power supply.

Meanwhile, the PNG LNG partners, which also include Oil Search Ltd and Santos Ltd, have advised that the project’s 120-day operational test period has successfully concluded. The test is one of several required to meet the project’s financial agreements.

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The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has forecast Papua New Guinea to be one of the most improved economies in the two regions during 2015, with growth expected to reach close to 6%.

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National Petroleum Company PNG (NPCP) intends to revise its annual plan for the coming year following the substantial fall in global oil prices. NPCP’s latest dividend payment has been described by the Independent Public Business Corporation as the ‘biggest from any state entity since independence’ after receiving K415 million.

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Ok Tedi Development Foundation has been working with Nupmo Holdings to develop a joint venture with Innovative Agro Industries that would lead to the production of chicken eggs and aquaponics products in North Fly district.

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PNG Coffee beans, Credit: AFP

The Milne Bay provincial government, in partnership with the Coffee Industry Corporation, has established a freight subsidy scheme to airlift coffee produce to Alotau for further shipment to manufacturing facilities in Lae.

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During the last financial year Nambawan Super Ltd commenced major reforms to meet the needs of the its 130,000 members, according to chief executive officer Garry Tunstall. The company will relocate mid-year to new offices.

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Australia’s Horizon Oil Ltd has reported that early results from the Nama-1 exploration well at PPL 259 in Western Province ‘cannot be considered to be commercial productive’.

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Coral Sea Petroleum Ltd, which owns five exploration licenses in PNG, has called a general meeting for 12 February at which shareholders will vote on changing the company’s name, to South Pacific Resources Ltd, and if it will move forward with a share placement.

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Australian-listed PanAust Ltd, which is aiming to develop the Frieda River copper project in PNG, has reduced its workforce across the whole business by 5% following an ‘efficiency review’.

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Papua New Guineans have been warned by the PNG Institute of National Affairs about putting their savings into unrealistic investment schemes.

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An LNG shipment

Due to falling oil prices and instability in other markets Japan could increase interest in Papua New Guinea’s liquefied natural gas (LNG) market, according to analysts from Credit Suisse Group.

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Almost 60,000 members of the National Superannuation Fund have yet to update their beneficiary records, according to the company’s December 204 report.

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PNG is mourning the death of prominent media personality, Justin Kili, who was affectionately known as ‘the voice of PNG’ and created the country’s first dedicated music program.

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And… Papua New Guinean cricketer Lega Siaka, who emerged on the Australian scene in the Big Bash League for the Melbourne Renegades last season, continued his strong progress in the sport by being selected to play for the Australian Prime Minister’s XI against England in Canberra last week. Siaka scored 27 runs off just 15 balls as the PM’s XI went down to the tourists by 60 runs.