The ExxonMobil Corp.-led PNG-LNG project joint venture in Papua New Guinea has signed another midterm LNG sale and purchase agreement, this time with BP Singapore Pte. Ltd. for LNG supply starting this month.
It is the second such agreement for the PNG-LNG project in four weeks.
The deal with BP specifies the supply of about 450,000 tonnes/year of LNG over an initial 3-year period, rising to about 900,000 tpy between August 2021 and August 2023.
The new agreement follows last month’s announcement of the midterm sale of LNG to PetroChina and now brings the total contracted volumes from PNG-LNG to about 7.5 million tonnes a year. Some 6.6 million tpy has been committed under long-term contracts to JERA, Osaka Gas, Sinopec, and CPC.
Negotiations are continuing with several other unnamed parties for the final midterm tranche of as much as 450,000 tpy from the project, which is based on Hides gas field in the Southern Highlands.
ExxonMobil has 33.2% interest and operatorship in PNG-LNG. Oil Search Ltd. has 29%, Kumul Petroleum Holdings Ltd. 16.8%, Santos Ltd. 13.5%, JX Nippon Oil & Gas Exploration 4.7%, and Mineral Resources Development Co. Ltd. 2.8%.
