PNG LNG capacity fully committed

The ExxonMobil Corp.-led PNG LNG joint venture has completed an agreement with CPC Corp. of Taiwan for the sale of 1.2 million tonnes/year of LNG for 20 years from the Papua New Guinea project (OGJ Online, Dec. 11, 2009).

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Mar. 2 -- The ExxonMobil Corp.-led PNG LNG joint venture has completed an agreement with CPC Corp. of Taiwan for the sale of 1.2 million tonnes/year of LNG for 20 years from the Papua New Guinea project (OGJ Online, Dec. 11, 2009).

The CPC contract means all the project’s production capacity has been committed to long-term agreements. All that remains before construction begins is the finalization of financing. This is expected to occur within weeks.

The PNG LNG project will pipe natural gas from oil and gas fields in the highlands region south to the Papuan Gulf and then east along the coast to Port Moresby, where a 6.6-million tpy LNG plant is to be built.

Joint venture interests are ExxonMobil 33.2%, Oil Search 29%, Independent Public Business Corp. (the PNG government) 16.6%, Santos 13.5%, Nippon Oil Exploration 4.7%, Minerals Development Co. (PNG landholders) 2.8%, and Petromin PNG Holdings 0.2%.

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