Environmental groups urge lenders to avoid Papua New Guinea LNG project

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SYDNEY, Dec 13 (Reuters) – Financing for a liquefied natural gas (LNG) project in Papua New Guinea should be refused to combat global warming, a civil society group said on Wednesday, saying some owners are seeking banks ahead of the project. This was announced because the company is using the . Last green light for next year.

An open letter from a coalition of 50 environmental and social justice organizations says the Papua LNG project is incompatible with keeping global warming below 1.5 degrees Celsius because of emissions generated when customers combust the gas.

The letter comes after dozens of large banks and public finance companies in the United States, Europe, Asia and Australia have financed the country’s early LNG projects and Total Energy’s (TTEF.PA) projects in the Asia-Pacific region since 2018. sent to the institution.

The joint venture partners did not respond to requests for comment.

The 5.4 million tonne-a-year Papua LNG is the second large-scale gas project in the poor Pacific nation, a joint venture between Total Energies, ExxonMobil (XOM.N), Santos (STO.AX) and state-run Qumul Oil Company. It is.

Despite activists warning banks in France, the United States and Australia, their respective governments have failed to persuade Papua New Guinea with defense and economic deals to counter China’s growing influence in the region. ing.

Qumul Petroleum said on Monday that it was in advanced discussions with three Chinese banks named in the letter to help fund the project in time for a final investment decision in 2024.

Kumul managing director Wap Sonku told Reuters that Chinese banks were keen to finance hydrocarbon projects.

France’s Total Energy is also currently preparing to finance a project advised by Credit Agricole (CAGR.PA), according to the letter. Credit Agricole did not respond to requests for comment after hours.

The project is supported by the Papua New Guinea government, which will receive a quarter of its tax revenue from mining and oil royalties in 2022.

Prime Minister James Marape said on Monday that countries with the highest carbon emissions and affluent lifestyles must take the lead in curbing emissions.

According to Total, the Papua LNG project will begin with the installation of a carbon capture and storage system that will bury approximately 1 million tonnes of carbon dioxide per year.

Report by Lewis Jackson.Editing: Christopher Cushing and Sonali Paul

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We report on breaking news from Australia and New Zealand covering the biggest stories in politics, business and products. I previously wrote about Morningstar stock.

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