The PNG LNG Project is a 6.9 million tonne per annum (MTPA) integrated LNG project operated by Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation. The gas will be sourced from the Hides, Angore and Juha gas fields and from associated gas in the Kutubu, Agogo, Moran and Gobe Main oil fields.
Over 9tcf of gas and 200 million barrels of associated liquids are expected to be produced over the Project's 30 year life. The gas will be conditioned in the PNG Highlands and then transported by gas pipeline to an LNG plant located approximately 20 kilometres northwest of Port Moresby. The gas will then be liquefied at the LNG plant prior to loading onto ocean going tankers to be shipped to international gas markets.
The initial phase of development comprises the following:
The total cost for this initial phase is estimated at US$19.0 billion, excluding shipping costs, and in September 2013, the Project operator, Esso Highlands Limited, confirmed that the estimated cost remained unchanged and that the Project remained on track for first LNG deliveries in the second half of 2014.
6.6MTPA of LNG from the Project is contracted to Asian buyers, comprising: TEPCO (~1.8 MTPA) and Osaka Gas (~1.5 MTPA) from Japan, CPC from Taiwan (~1.2 MTPA) and Sinopec (~2.0 MTPA) from China. The LNG has been jointly marketed, with ExxonMobil acting as marketing representative on behalf of the Project participants. The remaining 0.3MTPA will be sold either under contract or on the spot market.
The PNG LNG Project has a material impact on Oil Search, which has a 29% interest in the Project:
The Project will also provide a major boost to the PNG economy. An independent research group, ACIL Tasman has predicted that when the Project is in production, it will more than double the country's GDP and triple export revenues, as well as create significant employment and business development opportunities.
The PNG LNG Project is recognised in the market as one of the most economically robust LNG projects in the region. The benefits of PNG LNG include:
A fully aligned Joint Venture with ExxonMobil, which is highly respected for its ability to deliver major projects, as Operator.
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Download the PNG LNG Project brochure (1.27 mb)