ExxonMobil to accelerate PNG’s P'nyang gas development

Spanish Market: Natural gas
10/12/24

ExxonMobil plans to expedite the next stage of its 4.4 trillion ft³ (125bn m³) P'nyang gas field in Papua New Guinea (PNG), which is considered critical to the future of the nation's two major LNG projects.

Exxon, the operator of the 6.9mn t/yr PNG LNG joint venture, will bring pre-engineering works forward to April-June 2025 by accelerating the concept select phase that is presently underway. This would bring it forward "years sooner than previously envisaged," said ExxonMobil PNG's senior vice-president of commercial development, Johanna Boothey, at the PNG Resources and Energy Investment Conference in Sydney, Australia on 10 December

"We expect to undertake initial ground surveys and to establish a project office in Western Province in the coming weeks," she added.

PNG's government in March signed a fiscal stability agreement for the P'nyang project with PNG LNG partners.

A final investment decision (FID) for the P'nyang field is targeted for 2029, following the start-up of the planned 5.6mn t/yr Papua LNG export terminal, with synchronisation between the two projects seen as guiding the investment timeline.

But further delays to the Papua LNG project could cause feedstock shortages at PNG LNG, as the former project is expected to provide 2mn t/yr worth of gas to the latter. Continuing concerns about Papua LNG's FID slipping further may prompt Exxon to further advance P'nyang's development timeline.

ExxonMobil holds 49pc of P'nyang, Australian independent Santos controls 38.5pc while Japanese upstream firm JX Nippon has a 12.5pc stake.

By Tom Major

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11/12/24

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Brazil's inflation accelerates to near 5pc in November

10/12/24

Brazil's inflation accelerates to near 5pc in November

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Norway to end new international fossil fuel financing

10/12/24

Norway to end new international fossil fuel financing

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Brazil raises the stakes for gas competition

09/12/24

Brazil raises the stakes for gas competition

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Shale M&A to pick up pace in 2025 after hitting pause

09/12/24

Shale M&A to pick up pace in 2025 after hitting pause

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