Papua New Guinea LNG plant on schedule for 2014 start-up
() - ExxonMobil's Papua New Guinea LNG plant is on schedule to ship its first gas in 2014, Peter Botten, managing director of minority project shareholder Oil Search, said at a conference Jan. 23.The two-train plant, supplied with feed gas from three fields in the highlands and associated gas from existing oil projects, will supply LNG to Japan's Tokyo Electric Power and Osaka Gas, Taiwan's CPC, and China's Sinopec on long-term contracts, Botten said at an LNG conference in Singapore.
Key construction objectives this year will be well drilling, completion of the gas plant and the onshore pipeline. The Hides gas conditioning plant will have a capacity of 1 billion cubic feet per day and will be completed later this year, Botten said. The project's cost has climbed to $19 billion from $15.7 billion, mainly due to exchange rate movements and work stoppages related to community issues, ExxonMobil said in November.
Oil Search holds 29 percent in the project, while ExxonMobil holds 33.2 percent and Australia's Santos holds 13.5 percent. The remaining equity is held by the government's National Petroleum Co. of PNG (16.8 percent), JX Nippon Oil & Gas Exploration (4.7 percent) and PNG landowner group Mineral Resources Development Co. (2.8 percent).