LNG EXPANSION IN PAPUA NEW GUINEA

The Papua LNG project, led by TotalEnergies, faces delays and rising costs, with estimates increasing from US$10 billion to US$18 billion. While some banks have declined direct financing due to climate policies, others continue to fund the project's developers. The project is projected to emit over 220 million tonnes of CO2, increasing Papua New Guinea's industrial and energy sector emissions by 7%, and poses significant risks to biodiversity and local communities in the Gulf Province. Critics argue that investing in renewable energy would be more cost-effective and beneficial for the country's electricity needs.

• The Papua LNG project has experienced delays since March 2023 due to a significant increase in cost estimates, rising from US$10 billion to US$18 billion, and a lack of financing from major international banks. A Final Investment Decision (FID) is currently anticipated for the end of 2025.
• Despite some banks refusing to directly finance the Papua LNG project, they continue to provide funding for the LNG activities of the involved companies. For example, TotalEnergies received US$2.7 billion from the 400 largest banks between 2021 and 2023, with BNP Paribas, Crédit Agricole, and Société Générale providing over US$400 million, close to US$300 million, and over US$250 million respectively.
• The project is deemed incompatible with the goal of limiting global warming to 1.5°C and the IEA's Net Zero Emissions by 2050 scenario. It is estimated to emit more than 220 million tonnes of CO2 (scope 3) over its lifetime, which would increase the annual emissions of Papua New Guinea’s industrial and energy sectors by 7%.
• The project poses severe risks to biodiversity and local communities in the Gulf Province, including threats to the critically endangered Bulmer’s Fruit Bat and 48 species new to formal science. Social risks include a lack of transparency regarding Free, Prior and Informed Consent (FPIC) and concerns from an Independent Advisory Panel regarding TotalEnergies' monitoring of social impacts.
• The economic benefits for Papua New Guinea are questioned, as 95% of the gas is intended for export, likely to Asia. Government estimates suggest that 78% of the country's electricity needs could be met by renewable energy by 2030 at a cost of US$110 million, which is 100 times less than the cost of the Papua LNG project.

APA

Reclaim Finance (n.d.). LNG EXPANSION IN PAPUA NEW GUINEA. https://reclaimfinance.org/site/wp-content/uploads/2024/12/Frozen-gas-boiling-planet-frontline-story-papua-LNG.pdf

Chicago

Reclaim Finance. LNG EXPANSION IN PAPUA NEW GUINEA. n.d. https://reclaimfinance.org/site/wp-content/uploads/2024/12/Frozen-gas-boiling-planet-frontline-story-papua-LNG.pdf.

Wikipedia

{{cite report |author=Reclaim Finance |title=LNG EXPANSION IN PAPUA NEW GUINEA |url=https://reclaimfinance.org/site/wp-content/uploads/2024/12/Frozen-gas-boiling-planet-frontline-story-papua-LNG.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{reclaimfinancendlng, author = {{Reclaim Finance}}, title = {{LNG EXPANSION IN PAPUA NEW GUINEA}}, institution = {Reclaim Finance}, url = {https://reclaimfinance.org/site/wp-content/uploads/2024/12/Frozen-gas-boiling-planet-frontline-story-papua-LNG.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }