Trade & Investment

Although lower international commodity prices are impacting the pipeline of projects in the traditionally dominant mining sector, Papua New Guinea’s emergence as a major liquefied natural gas (LNG) exporter in 2014 has attracted global attention, with a second landmark LNG project moving towards a final investment decision in 2016. Construction of the PNG LNG project has increased the country’s profile in recent years, with investment inflows of more than $5.7bn between 2009 and 2013. While Australia remains the largest investor in the country, with $17.86bn in 2013, Japan has been the fastest-growing source of investment in recent years. Changes to PNG’s trade patterns mirror the growing diversity in the sources of inward investment. The country is the largest exporter among Pacific Island states and, with China and the Association of South-East Asian Nations trying to assert their influence in the region, the time to focus on building a stable and integrated trade route within the South Pacific has never been more important. This chapter contains interviews with Julie Bishop, Australian Minister for Foreign Affairs; Andris Piebalgs, EU Commissioner for Development; Carlos Pascual, Former Special Envoy & Coordinator for International Affairs, US Bureau of Energy Resources; and Ivan Pomaleu, Managing Director, Investment Promotion Authority.