At its peak of production, this gas project alone could contribute K3.5 billion directly to PNG GDP. A total of K75 billion to K110 billion could be expected in direct in-country benefits, with between K40 billion and K60 billion going direct to Government.

The project will generate significant econmomic benefits for PNG including:

• Employment during construction, including permanent employment, opportunities for the operation of the facility
• Expenditure in the local economy through the purchase and use of local resources
• Govenment revenue collected through taxes and royalties
• The generation of export income
• Skills development and training
• The local expenditure of worker disposable incomes and
• Raising the profile of LNG production in PNG

A project of this magnitude would affect the economy of PNG and its balance of trade position significantly. The direct benefits of the Liquid Nuigini LNG Project not only include valuable revenue streams for both national and provincial governments and landowners through taxes and royalty payments but importantly also through direct equity participation in the project. The net benefits to the country and the population are potentially large (or important).