Papua New Guinea seeks help to develop gas

June 2, 1997
The Papua New Guinea Department of Mining and Petroleum is soliciting oil and gas industry interest in that country's gas resource development. The government has been examining various options for development and utilization of gas resources discovered in Papua New Guinea, and its Natural Gas Utilization Task Force is currently soliciting expressions of interest relating to gas development and utilization schemes.

The Papua New Guinea Department of Mining and Petroleum is soliciting oil and gas industry interest in that country's gas resource development.

The government has been examining various options for development and utilization of gas resources discovered in Papua New Guinea, and its Natural Gas Utilization Task Force is currently soliciting expressions of interest relating to gas development and utilization schemes.

Submissions are due by July 31, 1997, to the task force chairman at Port Moresby, or they can be mailed directly to the task force chairman in care of the Petroleum Division, Department of Mining and Petroleum.

What's producing, what's not

The country now produces oil and exports about 80,000 b/d from the Kutubu fields complex.

Kutubu output will soon be augmented by production from adjacent Gobe area fields, under development.

Papua New Guinea has large, unexploited gas reserves and associated gas in Kutubu fields that is being reinjected into the reservoirs.

There is limited gas production from Hides field, used as fuel for a 60-MW power generation station, which supplies electricity to the Porgera gold mine. Current Hides gas reserves are estimated at 4 tcf; a seismic survey has been carried out, and further appraisal wells are planned.

Various estimates of Papua New Guinea's resources indicate reserves potential of 35-55 tcf in the Papuan fold belt.

Options, alternatives

Various feasibility studies have been carried out since 1989, but none has been implemented, officials said.

Main options considered include:

  • Proposals and locations for liquefied natural gas (LNG) plants.
  • Proposals for a gas pipeline to Queensland, Australia, using Kutubu area gas, including the possibility of supplementing output from Pandora field offshore (OGJ, Oct. 21, 1996, p. 28).
  • Proposals involving alternative uses of gas, such as construction of methanol plants, LPG export facilities, and an alumina smelter.

LNG schemes

Numerous LNG schemes have been discussed, including the most recent possibilities:
  • A 6.8-million metric ton/year, twin-train liquefaction plant at Wewak, on the north coast, by BP Developments Australia Ltd.
  • A single-train complex at Wewak to produce 4 million tons/year by BP Developments Australia.
  • A 1995 pre-feasibility study for an LNG project involving 1.09 bcfd in gas supplies from onshore fields to be shipped to a plant either at Cape Possession, on the south coast, or at Erima, near Madang, on the north coast, by Chevron Niugini Pty. Ltd.

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