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ExxonMobil holds a 33.2 percent operating interest in PNG LNG, while Santos has a 39.9 percent stake following the completion of a 2.6 percent stake sale to Papua New Guinea’s national oil and gas company Kumul, which owns a 19.4 percent stake.
Other partners in PNG LNG include Mineral Resources Development Company and Eneos Xplora.
Santos said in its quarterly report on Thursday that the PNG LNG plant reliability “remained high at more than 98 percent, supporting an annualized run rate of 8.7 Mtpa in the second quarter.”
According to Santos, the LNG plant produced 2.18 million mt in the second quarter, compared to 2.17 million mt in the second quarter last year and 2.17 million mt in the prior quarter.
Production from the Santos-operated PNG gas facilities contributed 15 percent of PNG LNG feedstock, with the central processing facility reliability above 98 percent, the company noted.
Santos said three PNG equity marketed cargoes were delivered before quarter end, with proceeds received after the period close,
contributing to sales revenue but not to free cash flow in the quarter.
“Santos is in an under-lift position of approximately 1.3 mmboe at the end of the second quarter, which is expected to be recovered in the second half of 2026,” it said.
Agogo
The company noted that FID was taken on the Agogo production facility tie-in project in May 2026, targeting an internal rate of return of above 50 percent.
During the quarter, the pipeline construction contract was awarded, and all line pipe was delivered to site, it said.
The APF tie-in project will deliver gas from the Santos-operated Agogo production facility to the PNG LNG gas pipeline via a new 19-kilometer pipeline, together with two new wells and associated production facility modifications.
Santos also said that the Papua LNG project, operated by TotalEnergies and supported by joint venture partners, ExxonMobil, and Eneos Xplora, continues to progress towards targeted FID in the second half of 2026.
GLNG
As per the Santos-operated Gladstone LNG export plant on Curtis Island near Gladstone, the facility shipped 23 LNG cargoes during the second quarter, one carfgo less compared to the same quarter last year and the prior quarter.
The 7.8 mtpa facility produced 1.37 million mt of LNG during the quarter, down from 1.40 million mt in the same quarter last year and down from 1.50 million mtin the prior quarter.
Santos said GLNG upstream production was “stable” during the quarter, averaging 703 TJ per day (gross).
“The GLNG plant is expected to operate at an annualized run rate of 5.6 Mtpa, as third-party purchases reduce as planned,” Santos said.
