The ANZ bank says the proposed Papua New Guinea LNG project will deliver PGK18bn (US$5bn) in new spending (in constant prices or in real terms) during its construction phase. This is equivalent to 27.3% of PNG’s 2022 GDP.
ANZ recently modelled the impact of the project, and says when production comes on stream in 2028, PNG’s gas exports will lift by 5.4 million tonnes per year, boosting the gross value add of its gas industry by 60%.
“This direct contribution to GDP combined with indirect benefits associated with gas exports will see PNG’s real GDP rise by PGK10bn in real terms in 2028, which is equivalent to 15.2% of 2022 GDP.
“Inflows associated with the project should restore balance to the foreign exchange market by mid-2024.
“With more major projects due for decisions over the next few years, we remain optimistic that PNG can grow its market share in meeting rising global demand for resources over the medium-to-long term. This will be enough to ensure construction continues to rise into the next decade shifting GDP and jobs to a higher plane,” ANZ economists state.
The Papua LNG Project is Papua New Guinea’s second big gas project and the first cab off the rank for PNG’s next wave of business investment, and is expected to commence by early 2024.