Papua New Guinea (PNG) must adjust to lower liquefied natural gas (LNG) and oil prices to avoid a crisis, according to a new policy brief by Development Policy Centre Visiting Fellow Paul Flanagan.

He argues that the PNG LNG project is still extremely important for the country, but because of lower prices many of the benefits of the production phase of the project have vanished – probably for at least a decade. Adjustments are urgently required in fiscal, monetary and foreign exchange policies to adapt to the changed realities.

PB10 Papua New Guinea’s vanishing LNG export boom
Paul Flanagan, December 2014
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» download Excel spreadsheet [Excel, 158KB)

Media coverage
» PNG government angry over Treasury expert’s oil price analysis, Radio Australia
» PNG joins list of countries staring into the abyss, The Australian
» PNG economic outlook looking darker as economic clouds gather, Radio Australia
» Low oil and gas prices pushing PNG towards economic crisis, Australian treasury expert warns, ABC News
» PNG LNG markets taken cruel blow - academic, Radio NZ
» Polye warns of budget crisis, Post Courier
» Govt’s Budget needs rethink: analyst, PNG Loop
» Polye: Budget cuts needed, PNG Loop
» Former adviser warns PNG on oil price, PNG Loop
» PM’s officer lashes Polye and foreign adviser, PNG Loop
» PNG: The World’s Biggest Grower in 2015?, The Diplomat
» Oil price drop shatters hopes for PNG LNG sector, Radio National Breakfast