Catholic Bishops Question LNG Project.

OSEAH PHILEMON

The Somare Government in Papua New Guinea is excited and has thrown all its political weight and muscle behind the multi-billion dollar liquefied natural gas (LNG) project in the Southern Highlands of Papua New Guinea.
It will not allow any criticism of the biggest resource project ever undertaken in PNG, which it says, will propel the Papua New Guinea economy into prosperity in the coming years.
But, while they have done everything possible to ensure the economic success of the project and win landowner support—despite continuing criticisms—to see the project advance into reality, questions remain whether it has done enough to deal with the social problems associated with such a large-scale project.
The Catholic Bishops Conference which is the peak body of the Catholic Church in PNG and the Solomon Islands, is not so sure.
The bishops met in Lae for their annual general meeting where they discussed the many issues affecting PNG and the implications for ordinary people.
The LNG project was high on their agenda and they came out raising serious concerns.
In a statement the bishops issued after their meeting, they posed one question: “Is the LNG project a “Blessing or a Curse” for Papua New Guinea?”
The bishops posed the question in a Pastoral Letter to the people of Papua New Guinea to answer.
The bishops in a lengthy statement said that 60 years ago, the once hidden fortunes of gold, silver, copper, nickel and oil were discovered in PNG. Today, Bougainville, Porgera, Ok Tedi, Lihir and Ramu are familiar names because of their mineral riches and the projects they generated.
All these ventures promised to bring development and prosperity to our country, especially in the provinces where they are located. Landowners expected great benefits too. But have these promises been kept? Or are these resources and amazing opportunities they present being squandered?
“No doubt. A great deal of positive economic growth has taken place in our nation in recent years.
“At the same, it is probably true that only a few people have benefitted significantly, some becoming enormously rich.
“Most ordinary people haven’t benefitted at all from the mineral wealth of our nation.
“Wealth hasn’t trickled down throughout society and so urban settlements are growing and rural areas are becoming poorer,” the bishops stated in their statement.
“Thus, for many people, the most obvious outcome of the so-called development has been more negative than positive, for example, widespread corruption, poverty and violence.
“The years of crisis in Bougainville, which resulted in many deaths and deep division in the PNG society, still weighs heavily on the minds of people.
“The environmental damage to the Fly River system by Ok Tedi Mining is another painful fact.
“We also lament the ravaged forests of Madang, the Gulf and Western Provinces and the social turmoil at Porgera.
“Kutubu oil continues to generate revenue but ordinary Southern Highlanders have seen very little gain from it over the years. And today, the people of the Rai Coast fight to save the waters of Basumuk Bay from pollution and potential damage to the fisheries there,” the statement stated.
Papua New Guinea is now poised to begin the largest economic venture of them all—the LNG project. Will it be a blessing or a curse for PNG?, the Bishops asked.
“According to analysts, the economic impact of the project will be positive.
“The resource will produce great wealth, more than doubling the Gross Domestic Product (GDP) of the nation.
“What is less certain is whether or not these riches will be managed wisely by national, provincial and local level governments as well as landowners, thus benefiting all of society,” stated the bishops.
The Catholic Bishops Conference also expressed concern about the possible environmental impact and social problems emanating from the LNG project.
The bishops said not much is known by the general public about will be the environmental impact of the project on the lives of the people.
They stated that the LNG infrastructure includes several large processing facilities and more than 700km of pipeline from the Highlands to the coast and then seabed to a site near Port Moresby.
“Environmental issues would seem to be potentially great in a project of this magnitude.
“Most likely these will be portrayed as minimal by the developer ExxonMobil and co-developers, Oil Search Ltd, a Papua New Guinean company, Santos, Nippon Oil and the PNG Government.
The PNG Government’s holdings are in Independent Public Business Corporation (IPBC), Mineral Resources Development Company (MRDC), which is the trustee and manager for landowner interests, and Eda Oil.  So the people of PNG are a significant stakeholder in the project.
But the bishops ask: “ Will we be as concerned about the environmental impact of the project as we should?”
“Environmental groups would be more critical of the project. Our government and landowners need to be vigilant too.
“However, both have a substantial economic interest in the project and a poor record regarding environmental protection in the past.
“So, environmental advocates, the media, interested non-government organisations and churches must be on alert, ready to speak out on behalf of the people of PNG and God’s creation.
“Developers would be wise to be more informative and transparent with regard to environmental issues and answer critics with facts and good science, which can be analyzed and tested by impartial experts,” the bishops stated.
They added: “More problematic is the potential for a serious negative social impact from the project, both in the immediate area but also in other parts of the country. Here, the Catholic Bishops must express great concern.
“We have seen outbreaks of violence over land ownership issues and drunken chaos after large payments of cash were distributed to people unaccustomed to such unexpected wealth. And going forward, some people will benefit greatly while others are left out.
“This is likely to cause the already existing rivalries to flare up, leading to increased violence and criminal activities.
“Even though PNG LNG will generate enormous wealth, we see the possibility of a rise in poverty because money will not be managed wisely by government, by families and individuals.
“Let’s remember too that some people will be displaced as project infrastructure is developed. Once their cash payments are gone, perhaps they will realise too late that their land and livelihood is lost forever.”
The bishops said traditional values and Christian faith are already under attack in PNG because of growing materialism and a hunger for money.
“There is a rising attitude which says get what you can while you can. This is especially true where public service departments are already corrupt and dysfunctional, health care and education services poor and law and order marginal.”
The bishops said many Southern Highlands and Hela people believe the police and courts will serve the project developers but won't be concerned about what goes on elsewhere.
“They suspect health care and education will deteriorate further as the project attracts professionals from these fields.
“Furthermore, family life will suffer in many places as men leave their families to find work with the LNG project, particularly if they spend their earnings on pleasure trips to the cities, on hired vehicles, alcohol and drugs, prostitution and payment to buy a second wife.
“HIV will spread as a result of bad and risky behaviour.
“We can expect these and other problems to intensify as part of the negative social impact from PNG LNG,” stated the bishops.