An economic impact assessment by independent economists, ACIL Tasman, found that the PNG LNG Project offers a means of unlocking value from the extensive gas resources of the Southern Highlands region.
The Project has the potential to transform the economy of PNG, boosting GDP and export earnings, providing a major increase in government revenue, royalty payments to landowners, creating employment opportunities during construction and operation, and providing a catalyst to further gas-based industry development.
The benefits from the Project have the potential to spread throughout the economy as the Government applies the earnings from its share of the project revenues to social and economic programs. These programs have the potential to improve the quality of life of Papua New Guineans by providing essential services and enhancing the country's productivity. Benefits would also flow through the economy as the wages and salaries of project employees and contractors are spent and as suppliers provide a range of goods and services to the project.
According to the ACIL Tasman (2008) PNG LNG Economic Impact Study the Project is the largest private sector investment ever contemplated in PNG. Potential benefits include:
- Total capital investment more than US$10 billion
- Recurring operating expenditure of more than US$195 million per year
- Doubling of PNG Gross Domestic Product (GDP)
- Four-fold increase in oil and gas exports