Westpac has identified the proposed US$14 billion Papua LNG Project as the most significant medium-term driver for Papua New Guinea's economy, with a Final Investment Decision expected later in 2026.
The bank’s latest economic report highlights the project's potential to reshape the country's growth trajectory, moving beyond the volatility associated with traditional commodity cycles.
The development aligns with the strategic priorities of Prime Minister James Marape, who has recently invoked the Westpac report to validate the government’s broader economic diversification strategy.
The administration is seeking to reduce reliance on established oil and gas revenues, which have historically dominated the fiscal landscape but failed to generate sufficient quality employment for the population.
The Papua LNG initiative represents a critical step in this transition, offering a structured pathway to sustainable industrial expansion.
Papua New Guinea’s economy grew by 5.6 percent in 2025, marking one of the strongest performances in the Pacific region.