Project Snapshot
PNG LNG Project
Facility Type: LNG
Scope: New Construction
Owner: ExxonMobil; Oil Search Limited; Santos; Nippon Oil Exploration; AGL; MRDC); Eda Oil
Location: Port Moresby  Papua New Guinea
Region: Australasia
Modified:  June 05, 2009

Project description

The more than $10-billion PNG LNG Project is expected to have a dramatic influence on the economy of Papua New Guinea (PNG) by essentially doubling the island country's gross domestic product. Project co-venturers ExxonMobil, Oil Search, Santos, Nippon Oil, AGL, and MRDC plan to commercialize petroleum resources in the country's Hides, Angore, and Juha fields as well as the associated gas resources in the operating oil fields of Kutubu, Agogo, Gobe, and Moran in PNG's Southern Highlands and Western provinces.

After undergoing conditioning at a Hides plant, the gas will be shipped via pipeline to an LNG terminal northwest of Port Moresby on the Gulf of Papua coast. The gas will be liquefied at the terminal, and the approximately 6.3 million tonnes per annum of LNG will be loaded onto tankers and shipped to the Asian market. ExxonMobil will be the marketing representative on behalf of the joint venture.

The project began the front-end engineering design (FEED) phase in May 2008. Five months later, Japan-based Chiyoda Corp. in announced that it had won an engineering, procurement, and construction (EPC) contract for the LNG plant and associated facilities.According to the company, the scope of the EPC competition includes facilities for inlet processing, treating, liquefaction, storage, and loading of 6.3 million t/a of LNG.

In June 2009, KBR announced that its Eos Joint Venture with WorleyParsons has won a project services contract from the ExxonMobil subsidiary Esso Highlands Ltd. Under the agreement, Eos will provide engineering, training, in-country support serices, and integrated project team services for construction and project management. Eos will maintain its engagement in the upstream component of the proposed PNG LNG development following the completion of Eos' current FEED services contract.

PNG LNG is expected to support more than 7,500 construction jobs and 850 jobs during production. The project is expected to begin an approximately 30-year production phase during the 2013-2014 time frame.

  Key Stats
Major units:
gas conditioning plant at Hides; pipeline; LNG liquefaction and storage facility
6.3M t/a
Bechtel; Chiyoda Corp.
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Jan 31, 2012 - PNG LNG Project operator Esso Highlands Ltd (EHL) said the project is working to get full construction activities back to normal in order to meet the deadline scheduled for 2014 and the subsequent export of first LNG offshore.
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Feb 23, 2011 - Engineering and construction company Clough Limited announced Wednesday that the Clough Curtain Joint Venture (CCJV) has received work orders worth AU$209m associated with the PNG LNG Upstream Infrastructure contract.
PNG LNG Partners Eye Expansion
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Dec 06, 2010 - The PNG LNG joint venture in Papua New Guinea may fastrack an expansion to secure buyers, a project partner said Monday.
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Nov 23, 2010 - The multi-billion dollar LNG project in Papua New Guinea will be exempted from import duty during its construction and preparation phase according to the Customs Tariff (2011 Budget)(Amendment) Bill currently before parliament.
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Sep 28, 2010 - Papua New Guinean villagers have gone on a rampage, attacking an ExxonMobil gas site.
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Sep 02, 2010 - Engineering and construction company Clough Limited on Thursday announced that the Clough Curtain Joint Venture has received firm work orders worth AU$250 Million associated with the Upstream Infrastructure contract awarded on 1 May 2009.
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Aug 30, 2010 - The BAM Clough Joint Venture has received a letter of intent from Chiyoda JGC Joint Venture to proceed with the design and construction of the LNG and condensate offloading jetty for the PNG LNG project.
GE to Supply Turbines, Compressors for PNG LNG
Aug 23, 2010 - GE Oil & Gas on Monday confirmed that it has entered into contracts to supply equipment and long-term service to PNG LNG.
GAIL Mulls Stake In PNG LNG - Chairman
Mar 22, 2010 - State-run GAIL (India) Ltd. (532155.BY) is exploring the possibility of investing in gas infrastructure projects in Nigeria, Ghana, Papua New Guinea and Egypt, its chairman said Monday.
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Dec 16, 2009 - Australian company Oil Search Ltd says lenders to the Papua New Guinea liquefied natural gas (PNG LNG) joint venture signed documents in New York overnight, providing $US14 billion ($A15.46 billion) in funding for the project.
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Apr 22, 2008 - ExxonMobil has welcomed Papua New Guinea's agreement to fiscal terms for its $11.65 billion liquid natural gas (LNG) project, calling it a significant step forward.
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