PNG ‘keeps’ China for the economy, US for external defence, Australia for internal security: PM

Papua New Guinea Prime Minister James Marape on Monday said ‘there was no conversation on security’ when he visited Beijing earlier this year
He added that his country was ‘in the oil and gas business’ and he did not want to be lectured on climate change by rich nations

Pacific nations

Reuters

Published: 11:01am, 11 Dec 2023

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Papua New Guinea Prime Minister James Marape said on Monday there had been no recent talks with China on security after the resource-rich nation signed a security agreement with neighbour Australia last week.

Marape said PNG had been transparent, and when he visited Beijing this year with his ministers “there was no conversation on security”.

“We keep them in the space of the economy, we went with traditional security partners for security,” he told a resources-investment conference in Sydney.

Marape shakes hands with Chinese President Xi Jinping at the Great Hall of the People in Beijing in October. Photo: Xinhua

PNG signed a defence agreement with the United States in May, and struck a security deal with Australia last week that Marape said was focused on internal security, including boosting police numbers and the judiciary.

“These two are complementary. External security with the USA, and internal security with Australia,” he said.

The resource rich but largely undeveloped nation north of Australia is seeking to boost foreign investment and trade to boost its economy, amid an increasing jostle for influence in the region between the US and China, which signed a security pact with neighbouring Solomon Islands last year.

Solomon Islands hosts China-funded Pacific Games amid big-power rivalry

Marape said improving security was important for foreign investors.

PNG’s exports are dominated by resources and energy, including liquefied natural gas.

Marape said he did not want to be lectured on climate change, and nations with the biggest carbon footprints and affluent lifestyles needed to take the lead in curbing emissions.

“My country is in the oil and gas business. Lucky for me we have the big forest and ocean to offset,” he said.

With 70 per cent of PNG forested, Marape said it was a “carbon negative” country and offered a green label to energy investors.

PNG stands as buffer to greater Asia and linking to the Pacific

PNG Prime Minister James Marape

A senior executive of PNG’s state-owned petroleum company said on Monday it was in advanced talks with Chinese banks to help fund its stakes in two massive liquefied natural gas (LNG) projects in the country.

Kumul Petroleum is holding talks with banks in the US, Europe and Australia but the talks with China were “mature”, its managing director Wapu Sonk said at the Papua New Guinea Resources and Energy conference in Sydney.

“Most of the funding discussions are really with Chinese backed banks because they have a different view on ESG (environmental, social and corporate governance),” he said. “It’s progressed to a point where it is mature.”

US-China’s Pacific power play to persist after Australia-Papua New Guinea pact

In a separate speech to the Lowy Institute think tank on Monday, Marape said the greatest challenge facing humanity other than climate change is poverty, and economic investment was “more powerful than just security”.

“The gap in poverty must be filled – the West cannot be ignorant to this,” he said, adding that he believed the next 100 years would be the Asian century.

He said PNG’s security interests were different to smaller Pacific nations because of its geographic position.

“PNG stands as buffer to greater Asia and linking to the Pacific,” he said.

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