Under the agreement, LNG Japan will arrange funding, provide technical advice, personnel development and professional skills support for Petromin to participate in LNG projects, PNG's National newspaper reported.

It will also study the project structure to maximise the benefit for the country and provide support for the commercialisation of Petromin's share of natural gas, according to LNG Japan president Kenichi Yonezawa.

"We will propose a training program for the Petromin employees to develop skills, providing opportunities to become acquainted with the companies in the LNG industry," he said.

Petromin managing director Joshua Kalinoe said the MoU gave both parties a basis on which to proceed on any future specific business partnerships.

He added Japan had the market and well-established infrastructure for LNG with a reserve of investment funds that Petromin hopes to access through strategic partnership arrangements.