Economic Analysis - What Our Clients Want To Know: PNG LNG Q&A - MAR 2018
BMI View: We have received a number of questions regard ing Papua New Guinea ' s (PNG) fiscal and external outlook, as well as the contribution of the LNG sector to the economy. Below are the questions and answers related to the topic.
How much will the PNG LNG project contribute to the budget of the government?
The PNG LNG project is estimated to add around USD31.0bn to the government's coffers between 2014 and 2040, according to a projection by the government in the 2011 Budget. With regards to the flow of revenue receipts, the first payment was expected in 2015 and projected to increase rapidly during the first 10 years of production as the benefits of accelerated depreciation (a form of tax concession) are gradually exhausted. Revenue to domestic stakeholders was then projected to peak and remain stable at around PGK5.0-6.0bn per annum in 2027-2034, before declining towards the end of the production cycle.
|Risen Sharply Since 2010|
|Papua New Guinea - External Debt And Servicing Cost, USDmn|
|BMI, World Bank|