PNG Gas

For LNG project developed by Liquid Niugini Gas, see PNG LNG.

The PNG Liquefied Natural Gas Project (PNGLNG) is a project to develop linked gas fields in the Hela, Southern Highlands, and Western Provinces of Papua New Guinea, and to construct a pipeline to the coast, and an export plant outside Port Moresby.

History

Originally, it was planned to transport the gas to Australia via 4,000 kilometres (2,500 mi) long offshore pipeline. A subsidy of Chevron, South Pacific Pipeline initiated the project in 1998 with an Environmental Impact Statement. The plan was to build a pipeline from Kutubu, through Gobe and Kopi to Bamaga and then south to Gladstone in Queensland, where it was to be connected with existing infrastructure. However, in January 2007 the connecting pipeline project was suspended, mostly due to a lack of foundation load customers, and the project partners started working on the current LNG project.[1] On 22 May 2008, the Government of Papua New Guinea and project consortium signed an agreement outlining fiscal and legal framework for the project.[2][3]

Technical description

The two-train LNG plant will have capacity of 6.3 million tonne of LNG per annum. In addition to the gas from the Hides field, potentially gas could be sourced also from the Juha and Angore fields. The pre-FEED study was completed by the end of 2007. The decision to proceed with the Front End Engineering Design (FEED) will be made at the end of March or early April 2008.[4] The FEED most likely would be prepared by KBR. The final investment decisions should be made in 2009. The plant is expected to be commissioned by 2013 and it is expected to cost US$9.5 billion, of which the development of the Hides, Juha and Angore gas fields together with a pipeline to the coast may cost US$5 billion, while the LNG plant could cost US$4.5 billion.[5][6]

Contractors

Engineering, Construction and Procurement (EPC) company Clough Curtain Joint Venture (CCJV) was awarded the contract for liquefaction plant and upstream infrastructure work in June 2009 and September 2010 respectively. In December 2009, EPC company Chiyoda JGC Joint Venture (CJJV) was awarded the contract for the process plant. Honeywell was chosen to be the Main Instrumentation and Control Contractor (MICC), responsible for providing distributed control systems (DCS), safety, fire & gas and operator training simulation (OTS) systems. [7]

Project company

The project is led by ExxonMobil, who will be also the operator of the plant and sell the project's output on behalf of the owners. ExxonMobil owns 41.6% of participating interest. Other partners of the project are Oil Search Limited (34.1%), Santos Limited (17.7%), AGL Energy (3.6%), Nippon Oil (1.8%) and MRDC (a PNG company representing landowner interests - 1.2%).[8][9] Equities will change when the PNG State nominees join as equity participants at a later date.[10] AGL Energy is considering divesting its stake in the project as its main interest was the gas pipeline to Australia, and not LNG.[4]

See also

References

  1. ↑ "Oil Search shelves PNG pipeline for LNG plant". Reuters. 2007-01-31. Retrieved 2008-03-01.
  2. ↑ "PNG LNG players sign on the line". Upstream Online. NHST Media Group. 2008-05-22. (subscription required). Retrieved 2008-06-07.
  3. ↑ "LNG Project Expected To Underpin PNG's Economy for Decades". Downstream Today. 2008-05-27. Retrieved 2008-06-07.
  4. 1 2 "AGL Considers Selling Stake in PNG Project". Downstream Today. 2008-02-29. Retrieved 2008-03-01.
  5. ↑ "Santos Joins Papua New Guinea LNG Study". Rigzone. 2007-04-11. Retrieved 2007-08-03.
  6. ↑ "Oil Search puts PNG LNG price at $9.5bn". Upstream Online. NHST Media Group. 2007-05-04. (subscription required). Retrieved 2007-08-03.
  7. ↑ "PNG LNG Project, Papua New Guinea". Hydrocarbons - Technology.com. Retrieved 2010-08-08.
  8. ↑ "PNG LNG players thrash out details". Upstream Online. NHST Media Group. 2008-03-14. (subscription required). Retrieved 2008-03-14.
  9. ↑ "AGL, ExxonMobil Studying LNG Project in Papua New Guinea". Downstream Today. 2007-07-03. Retrieved 2007-08-03.
  10. ↑ "Papua New Guinea LNG Partners Sign Joint Operating Agreement". Downstream Today. 2008-03-14. Retrieved 2008-03-14.

External links

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