Papua New Guinea Market Opportunities
Economy: Papua New Guinea’s (PNG) $20 billion economy is comprised of subsistence agriculture, mining (notably gold, copper and silver), hydrocarbons, cash-crop agriculture and a small manufacturing sector which focuses on beverages, processed foods, cosmetics, and steel fabrication. PNG’s fertile land and natural resources drive exports of minerals, oil, liquified natural gas, coffee, cocoa, palm oil, coconuts, forestry and fish. Hurdles to overcome in doing business in PNG include its remote location, complex geography, imprecise land ownership regime and limited infrastructure.
The United States in PNG: The United States has the third largest trade and investment presence in this region, behind Australia and China, with U.S. exports totaling USD 216 million in 2016. The United States has a wide base of established businesses operating in PNG such as Coca Cola, Colgate Palmolive, Caterpillar, John Deere, Mercury Marine, 3M, Dell, Ford, Cummins, Boeing, General Electric, Otis Elevator, Parker Drilling, Columbia Helicopters, Hertz and Avis.
In 2009, the U.S. Export-Import Bank extended a $3 billion loan to a consortium led by ExxonMobil to help fund the $19 billion PNG Liquefied Natural Gas Project (PNGLNG) which comprised multiple well sites, a gas conditioning plant, over 700 km of pipeline, and a state of the art liquefication plant. Production began in 2014 and it is estimated that the project will produce over 11 trillion cubic feet of LNG over the next 30 years. Natural gas reserves are estimated to be 155 billion cubic meters. At the time, this was the largest export financing initiative in ExIm Bank’s history.
Export Opportunities: PNG presents a number of promising areas for U.S. exports including mining and energy equipment and services, agricultural equipment and services, building and construction supplies, aircraft (incl. parts, helicopters and UAVs), telecommunication equipment and services, renewable energy equipment processed foods and beverages, tourism, water resource equipment and services, franchising, road vehicles, power generation equipment, pleasure boats, safety and security systems and defense and security equipment.
Contact the American Embassy in PNG at +675 321 1455 and EconPortMoresby@state.gov for more information.