PNG gas projects tap synchronisation

Papua New Guinea's (PNG) prime minister James Marape said construction of the 4.4 trillion ft³ (125bn m³) P'nyang gas field will begin immediately after the 5.6mn t/yr Papua LNG starts production in 2028, with synchronisation planned between the two projects.

Marape said he has been assured a final investment decision is on the horizon next year for Papua LNG, operated by TotalEnergies, adding he expected the ExxonMobil-operated P'nyang to return about 60pc of the project's total value chain benefit back to the PNG economy.

PNG's government expects the construction workforce from Papua LNG to immediately shift to building P'nyang once the former project is complete, the PNG Resources and Energy Investment conference in Sydney heard.

Marketing activity for the project has started and TotalEnergies and PNG state-owned Kumul will jointly market most of the plant's output, said Papua LNG manager of public affairs and external communications Richard Kassman.

"Partners will sell their gas separately but the state has agreed to join forces with TotalEnergies and we will market our share of the gas, which comprise a little bit over 50pc," Kassman said on 12 December, noting marketing teams were already engaged in sales negotiations in Singapore.

The future of PNG's LNG business was positive, said ExxonMobil PNG's senior vice-president of commercial development Johanna Boothey, with initial exploration showing promise of greater gas discoveries that could possibly dwarf the 6.9mn t/yr ExxonMobil-operated PNG LNG and Papua LNG projects.

Seismic testing has shown strong prospects at the Wildebeest field in the Papuan basin, she said, with ExxonMobil working with the nation's petroleum minister to advance exploration to prove and quantify the resource in 2025 through drilling and appraisal wells.

"Timing is important and with focused development Wildebeest has the potential to commence immediately after the completion of P'nyang," Boothey said. "This will further extend construction activities in PNG from the eight years we previously talked about to 13 years."

By Tom Major