Papua New Guinea's National Government has committed itself to develop the vast gas reserves in the country with an allocation of K100 million or almost 40 million US dollars, in the 2008 National Budget.
The Finance and Treasury Minister Patrick Pruaitch announced during his budget speech that the Government was yet to know the full value of commercialising PNG's gas resources to make a firm commitment to state equity and how these commitments would be financed.
The Post Courier newspaper reports there is a need to know because the Government remains committed to supporting the commercialisation of PNG gas resources.
A number of liquefied natural gas proposals have been submitted to the Government already, including those from Liquid Niugini Gas Limited, ExxonMobil and Oil Search Limited.
Preliminary negotiations are going on between the Government and ExxonMobil on a draft project agreement.
The ExxonMobil LNG project will involve capital investment worth more than $US10 billion.
