The PNG LNG Project is a 6.9 million tonne per annum (MTPA) integrated LNG project operated by ExxonMobil PNG Limited. The gas is sourced from seven fields: the Hides, Angore and Juha gas fields and from associated gas in the Oil Search operated Kutubu, Agogo, Moran and Gobe Main oil fields.
More than 9 tcf of gas and 200 million barrels of associated liquids are expected to be produced over the Project's 30+ year life. The gas is conditioned in the PNG Highlands and then transported by gas pipeline to the LNG plant, located approximately 20 kilometres north-west of Port Moresby. The gas is liquefied at the LNG plant prior to loading onto ocean-going tankers to be shipped to Asian gas markets. Meanwhile, condensate from the PNG LNG Project is combined with existing production from Oil Search’s PNG oil fields and exported as ‘Kutubu Blend’ from the Kumul Marine Terminal located offshore in Gulf Province.
The Project came onstream in the first half of 2014, ahead of schedule and within the revised US$19 billion budget. Condensate production and export commenced in March, followed by the start of LNG production in April 2014. The Project reached full nameplate operating capacity in July 2014, only three months after first production. In February 2015, the Project achieved financial completion, enabling co-venture cash flow distributions to commence. At plateau, Oil Search’s share of annual production is estimated to be approximately 20 - 21 mmboe.
The Project has transformed Oil Search into a significant LNG exporter, with a long-term and stable cash flow. In addition, it has demonstrated that the co-venture partners and PNG are capable of delivering a world-class LNG project in a developing country, which has created an excellent platform for future LNG developments in PNG.
With the achievement of stable operations, the focus has turned to production optimisation/debottlenecking. Oil Search believes debottlenecking offers the potential to add material incremental value to the Project.
The initial phase of development comprised the following:
6.6 MTPA of the Project’s 6.9 MTPA nameplate capacity is contracted to Asian buyers, comprising:
The LNG is jointly marketed, with ExxonMobil acting as marketing representative on behalf of the Project participants. Remaining volumes are sold on the spot market.
The PNG LNG Project is recognised in the market as one of the most economically robust LNG projects in the region. The Project’s competitive advantages include:
ExxonMobil and its co-venturers recognise that PNG is one of the most beautiful and unique places on earth. It is a nation of distinctive cultures and people, closely linked to the incredible natural environment, endowed with many natural resources. The Project's goal is to operate PNG LNG in a way that protects these national blessings while helping to bring economic success to the country and contributing to the global community by supplying energy to help meet the world's growing demand.
Details on the Project’s construction, safety, security, health, environment and social management activities are contained in the PNG LNG Environmental and Social Reports.
Click here to access the PNG LNG Environmental and Social Reports
Click here to visit the PNG LNG website