TotalEnergies launches integrated FEED for Papua LNG project

March 7, 2023
TotalEnergies has launched the fully integrated front-end engineering and design (FEED) stage of the proposed $10-billion Papua LNG project aimed at developing Elk-Antelope gas fields in the eastern highlands of Papua New Guinea.

TotalEnergies has launched the fully integrated front-end engineering and design (FEED) stage of the proposed $10-billion Papua LNG project aimed at developing Elk-Antelope gas fields in the eastern highlands of Papua New Guinea.

Following pre-FEED studies that started in July 2022, the joint venture selected a development concept that includes four electrical LNG trains (e-trains) with total production capacity of 4 million tonnes/year (tpy) of LNG.

The operator will build the trains within the boundaries of the existing liquefaction plant at Caution Bay near Port Moresby, which was built in the country’s central Highlands region 14 years ago for the PNG LNG project.

Papua LNG has secured the use of 2 million tpy of additional capacity in the existing trains of PNG LNG.

Papua LNG will reduce carbon intensity through use of e-trains and the reinjection of produced CO2 (up to 1 million tpy) back into reservoirs.

ExxonMobil, Papua LNG joint venture partner and PNG LNG project operator, will construct and operate the e-trains.

A final investment decision (FID) for Papua LNG is expected at end-2023 or early 2024 with construction to begin in 2024. The fields could be brought on stream by late 2027 or early 2028.

The plan is to bring gas from Elk-Antelope fields to the Caution Bay e-trains via a 320-km onshore and offshore pipeline.

In the framework to integrate the two projects, TotalEnergies will join the PNG LNG project via a heads of agreement signed with JX Nippon for the sale of a 2% interest in PNG LNG after a Kumul Petroleum Holdings (PNG’s national company) back-in right. JX Nippon currently holds 4.7% of PNG LNG.

TotalEnergies holds 40.1% interest in Papua LNG. Partners are ExxonMobil (37.1%) and Santos (22.8%) (acquired through Oil Search Ltd. takeover in 2019). The Papua New Guinea government has the right to exercise a back-in right of up to 22.5% interest at FID.