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Papua LNG project moves ahead

to next stage

PAPUA NEW THE Papua LNG project, Papua New Guinea’s managing director and CEO Kevin Gallagher
GUINEA’ second gas project moved ahead to its next stage stated.
GUINEA
with a fully integrated front-end engineering “FEED entry for Papua LNG is a significant
The plant will have a and design (FEED) launched on March 7 by its step for the project and we are working closely
capacity of 4mn tonnes joint venture partners Santos, TotalEnergies and with our partners, the PNG government, com-
per year. ExxonMobil. munities and local companies to deliver new
With pre-FEED studies having come to a jobs and help support the local economy,” Gal-
conclusion, Papua LNG partners have decided lagher added.
to use four electric LNG trains (e-trains) with Papua LNG’s selected concept is expected to
a combined capacity of 4mn tonnes per year have a lower capital expenditure outcome com-
(tpy). Papua LNG has also obtained access to up pared to the previous concept, with costs refined
to 2mn tonnes of existing liquefaction capacity in the FEED stage. The project’s partners have
from PNG LNG, which is operated by Exxon- expressed that they will examine project finance
Mobil. First production is forecast to begin by possibilities for a portion of the project cost.
late 2027 or early 2028. TotalEnergies holds a 40.1% stake in the pro-
By selecting e-trains and utilising re-injection ject, while ExxonMobil possesses a 37.1% inter-
of reservoir carbon dioxide the carbon intensity est and Santos holds a 22.8% stake. However, the
of the project will be diminished. Papua New Guinea government retains the abil-
“The concept selected for Papua LNG max- ity to exercise a back-in option for up to a 22.5%
imises value through midstream integration interest at the final investment decision (FID),
with PNG LNG to deliver increased capital which is projected to take place in late 2023 or
efficiency and lower operating costs, consistent early 2024. If the government does exercise its
with our disciplined operating model,” Santos right, Santos’s stake would shrink to 17.7%. ™

Week 10 09•March•2023 www. NEWSBASE .com P11