MORE than 350 people are feared missing after a boat accident in Papua New Guinea's northwest.

About 8.30am (AEDT), the ferry between Lae and Kimbe West sent a distress signal, PNG's National Maritime Safety Authority said.



"The reports have come back on that, we're getting reports," a spokesperson said.



NMSA rescue co-ordinator Fred Siroi said he will make a public statement later in the day.



Australian diplomatic staff are monitoring the situation, but there have so far been no reports of Australians on board.

