"Banks decline to finance LNG project in Papua New Guinea" 11/02/26

A total of Twenty-nine international banks and export credit agencies have ruled out financing a liquefied natural gas (LNG) project in Papua New Guinea, citing climate, environmental and human rights concerns. The project is led by French oil and gas giant TotalEnergies, which says the project will go on as planned, nonetheless. 

Twelve financial institutions recently declined the project, including ING, KfW IPEX-Bank and Standard Bank have publicly ruled out financing the project along with major banks such as Crédit Agricole and BNP Paribas.

Bouhey said the companies have failed to meet international standards in their environmental impact assessments for the project. He also raised concerns that the process of free, prior and informed consent for local communities was flawed. According to a 2019 company-commissioned human rights impact assessment, the project would affect 39 villages and 12,700 people, the majority of whom are Indigenous.

In a press release published in January, TotalEnergies said the company adheres to all international commitments, including the Equator Principles and the International Finance Corporation’s performance standards.

TotalEnergies told Mongabay via email that the project in Papua New Guinea “is progressing as scheduled,” adding that financing for the project is not dependent on the institutions that have ruled it out.  

TotalEnergies and its partners are “working closely with the authorities, local communities, and the local economic fabric to ensure that the Papua LNG project is exemplary from both a social and environmental standpoint,” the company said.