Energy majors eye PNG LNG project as Middle East turmoil spikes demand

Discovered in 2006, the Elk-Antelope gas field in Papua New Guinea’s Gulf Province contains energy equivalent to more than a billion barrels of oil, valued at roughly $70 billion, and underpins the Papua LNG proposal that would build a 320-kilometre pipeline to deliver over 5 million tonnes of LNG each year. Recent Iranian missile attacks on Qatari LNG facilities have intensified the search for reliable Asia-Pacific gas supplies, with Japan, China, South Korea and Taiwan identified as likely customers.

Major stakeholders such as TotalEnergies, ExxonMobil and Santos are urging a final investment decision by the end of the year, yet the project still lacks signed supply contracts and has been rejected by nearly 30 banks over alleged breaches of the Equator Principles. Indigenous communities in Gulf Province express mixed feelings, demanding clearer information and stronger environmental safeguards, while the PNG government pushes for benefit-sharing agreements with landowners. TotalEnergies says it is working to exceed social and biodiversity standards, but critics note the project's impact on undiscovered species remains uncertain.