28 Sep 2010

PNG villagers destroy equipment used in LNG project

1:11 pm on 28 September 2010

Papua New Guinean villagers have gone on a rampage, attacking an ExxonMobil gas site in Gulf province.

The newspaper, The National, says high powered weapons were used in the surprise attack that saw a Caterpillar 740 dump truck and service truck burned, and other equipment destroyed.

The attack on the LNG contractors Clough Niugini and Queensland company Curtain Brothers was carried out last Friday near Kaiam Ferry in Kikori on the southeast coast.

The cause of the unrest is unclear, but the National reports it was part of ongoing disagreements between various landowner groups in LNG sites across the country.

The $16 billion ExxonMobil-led LNG project is hoped to double PNG's gross domestic product with at least 30 years of gas sales to Asian buyers once it comes online after 2014.