The town has a population of roughly 8,500 people.
The US National Tsunami Warning Center said there was no threat of tsunami waves. Earlier in the day it had said hazardous tsunami waves were possible within 1,000 kilometers (roughly 621 miles) along the coasts of Papua New Guinea and Indonesia.
CORRECTION: An earlier version of this story quoted the Australian Red Cross as saying at least 16 people had been killed. The Red Cross has confirmed that death toll is incorrect, and related to a statement concerning a previous earthquake in Papua New Guinea that was mistakenly circulated.