The National newspaper has reported that Hiwa Tuguba Hides Association landowners will ask Oil Search to "voluntarily close" the valves of the Hides gas plant in protest over unmet demands with the PNG Government.

Police have already flown in to the area.

However, Oil Search managing director Peter Botten told PNGIndustryNews.net positive discussions had been held with landowner leaders in the Hides area and any possible local threat to the project at this time is not real.

The Hiwa Tuguba Hides Association, which comprises of 14 clan chiefs, previously said it would mobilise all villagers to shut down the access road to the Hides plant site, with 40 members having flown to Tari in the Southern Highlands province from Mount Wagen.

A source close to PNGIndustrynews.net said this landowner group does not represent the Hides area or landowners and may be seeking to push their agenda with the PNG Government.

Hiwa Tuguba Hides Association demands have included a 10% equity in PNG LNG under a commercial term as provided in the Oil and Gas Act 1998, the release of memorandum of understanding project funds to "legitimate" landowners at the project site, and the PNG Government to honour the K5 million ($A1.87 million) Hides Business Development grant.