PNGLNG Pipeline Segments three (3), four (4) and five (5) beneficiaries will receive their share of the project benefits, totalling K4.9 million in royalty and equity this week.

They follow after thirty-seven (37) major beneficiary clans in Segment Seven (7), Kikori, who were the first to receive their share; K9.2 million out of K21.9 million earmarked as cash benefits for the entire pipeline segments of the project.

The Mineral Resources Development Company (MRDC) officially launched the payment exercise Wednesday, 5th March in Kikori, Gulf province, witnessed by the Minister for Petroleum and Energy, Hon. Kerenga Kua and the Governor for Gulf, Hon, Chris Haiveta.

The three segments (3,4&5) are part of eight (8) segments along the 679km pipeline transporting gas from Hides in Hela to Caution Bay outside Port Moresby.The Pipeline runs through five provinces, Hela, Southern Highlands, Gulf, Western and Central provinces.

Segment 3, 4 and 5 beneficiaries are from Moran, Kutubu and Gobe in the Southern Highlands and have a total of 77 clans as per their respective Ministerial Determinations (G359, G360 and G361 of 2018). Segment 3 has 20 major clans and 27 sub clans who will share K850,000, Segment 4 has 10 major clans and 10 sub clans who will share K1.5 million while Segment 5, who has 10 major clans and will share K2.5millon.

Director representing Segment 4 and 5 on the board of the Pipeline trust company, Gas Resources Pipeline Limited (GR-Pipeline), Telabe Babena, expressed his appreciation and relief saying he was glad his people will finally receive their benefits.

“Its been a long wait, many people of died and gone, without seeing the benefits promised to them almost 7 years ago when the project started. “I am glad this day is finally here, this is a start and for those of us here now we can enjoy this benefits but in a positive way, to improve our livelihoods in the years to come”, said Babena.

Babena thanked MRDC Managing Director Augustine Mano and the rest of board of GR- Pipeline limited for pushing through to make this day happen for all the Pipeline Segments.

The royalty payment for the pipeline landowners is for years 2014 – 2018 and totals K31.3 million, while equity payments total K23.16 million for years 2014 – 2016.

As required by the Oil and Gas Act, of the combined total of K54.26 million, 40% is distributed as cash benefits through their respective bank accounts, 30% is set aside for community infrastructure projects, while another 30% will be retained in the Future Trust Fund for investment.

The clans also raised concerns and called for reviews of the UBSA & LBSA as well as a review of the Oil and Gas Acts to allow for them to receive greater cash benefits.

Petitions of their concerns were received by the Department of Petroleum and Energy officials for the Ministry to consider.

Meanwhile, The payments for Segments 1 and 2 will be advised at a later date.