Rick Wilkinson
OGJ Correspondent
MELBOURNE, Sept. 9 -- InterOil Corp. is pushing ahead with its proposals for an LNG project in Papua New Guinea after submitting a project agreement to the Papua New Guinea government.
InterOil, along with partners Petromin PNG Holdings and Pacific LNG, submitted the agreement for the construction of the proposed plant late last week.
Both Prime Minister Michael Somare and Minister for Petroleum and Energy William Duma have voiced their support for the $6 billion (Aus.), two-train LNG project that will have the capacity to produce 4 million tonnes/year of LNG.
InterOil says the project also is supported by other key Papua New Guinea government members.
According to InterOil, about 5,000 jobs will be created during the peak construction period at the plant site and economic returns are expected to fund public infrastructure and community services.
Although InterOil has yet to firm up sufficient reserves for the project, the company points to two separate independent resource evaluations that support the project agreement. It believes the likelihood of more successful gas and gas-condensate exploration has increased along with the potential for commercial oil discoveries.
InterOil has targeted first production from the project as end 2014 or early 2015.