Papua New Guinea Parliament Unanimously Passes Four Bills to Advance $14.5 Billion LNG Project
Papua New Guinea’s parliament approved four fiscal amendment bills for the Papua LNG project, a step the prime minister says will unlock about $14.5 billion in foreign investment.
Papua New Guinea’s legislature unanimously adopted four amendment bills—Income Tax (Amendment) Bill 2026, Resource Contracts Fiscal Stabilisation (Amendment) Bill 2026, Oil and Gas (Amendment) Bill 2026, and Stamp Duties (Amendment) Bill 2026—aimed at facilitating the Papua LNG project. Prime Minister James Marape described the passage as a pivotal milestone that could attract roughly $14.5 billion of overseas capital.
The reforms embed previously negotiated fiscal arrangements and introduce a price-linked benefit-sharing scheme using a neutral $81-per-barrel oil price reference, offering temporary support when prices fall and a premium to the state when they rise, each limited to $1.95 billion. The government also secured better royalty calculations, new domestic gas pricing, discounted gas for community power at Caution Bay, and a right to acquire an extra 2.5 percent interest in the project.
Marape emphasized that landowner, provincial and local government royalty and development levy rights remain fully protected. He thanked parliamentarians, Petroleum Minister Jimmy Maladina, and partners including Kumul Petroleum Holdings Limited, Mineral Resources Development Company, TotalEnergies and ExxonMobil for their roles.
Why it matters
The bills clear a major regulatory hurdle, paving the way for a multi-billion-dollar LNG project that could reshape PNG’s economy and attract significant foreign investment.
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