Third Papua New Guinea LNG train planned to boost domestic power

The ExxonMobil Corp.-led Papua New Guinea-LNG (PNG-LNG) joint venture has signed a memorandum of understanding with the Papua New Guinea government to supply gas for electric power plants in return for enabling the project to develop a new gas field and expand to a third LNG train.

It is likely the development of the P’nyang gas field in the western highlands in licence PRL3 would be the supply source for the LNG plant expansion.

PNG-LNG has pledged to supply 20 MMcfd of gas for 20 years to help Papua New Guinea improve its electricity generation capacity and reliability of power supply in the country.

Up to 25 Mw of power will be provided to Port Moresby through the PNG-LNG facilities for an interim period. At the same time the government will look at long-term power generation options.

The remainder of the promised gas will be used to supply a state-owned power station near the LNG plant.

A new appraisal well will be drilled at P’nyang within 2 years of being awarded a development licence for the field. A pipeline license also will be awarded.

Final investment decision for a third LNG train will be no later than yearend 2017.