TotalEnergies pushes back Papua LNG FID to 2025

French energy giant TotalEnergies and its partners have postponed a final investment decision on the planned Papua LNG export project in Papua New Guinea.

This was revealed during a meeting between Patrick Pouyanne, chairman and CEO of TotalEnergies, and James Marape, the Prime Minister of Papua New Guinea, according to a statement by TotalEnergies.

Pouyanne reaffirmed that TotalEnergies, operator of the project, and its international partners ExxonMobil, Santos, JX Nippon, are “fully committed” to Papua LNG.

“In particular, he shared the high interest of several LNG buyers for off-taking LNG from Papua LNG due to its strategic location close to key Asian markets,” he said.

Pouyanne also said that, after receiving first EPC offers, it appears that the project “will need to keep working with contractors to obtain commercially viable EPC contracts and requires more work to reach FID.”

“In that view, the project will review the structure of some packages and open the competition to an enlarged panel of Asian contractors. As a consequence, FID of Papua LNG project is now expected in 2025,” the statement said.

Pouyanne and Marape “agreed that this slight delay will not affect the early works planned in Papua New Guinea in 2024 and that the project will maintain its full support to local population of Gulf Province,” the statement said.

Moreover, Pouyanne announced that TotalEnergies intends to drill the first deepwater exploration well on the PPL 576 license in 2025.

Papua LNG

In March 2023, the Papua LNG partners launched fully-integrated front-end engineering and design (FEED) for the project, while TotalEnergies sold a small stake in the project to Japan’s JX Nippon Oil & Gas Exploration in June.

Pouyanne said in September last year the project partners could take a final investment decision on the project “by the end of this year or beginning of the next year.”

A spokesperson for France’s Credit Agricole recently confirmed to LNG Prime that the group will not finance Papua LNG or Rovuma LNG.

“Credit Agricole does not finance any new fossil fuel extraction projects as disclosed last December during its second climate workshop,” the spokesperson said.

TotalEnergies has a 37.55 percent operating stake in the Papua LNG project, ExxonMobil has 37.04 percent, Santos owns a 22.83 percent interest, and JX Nippon holds 2.58 percent.

The project calls for the design of about 4 million tonnes per year of liquefaction capacity adjacent to the existing PNG LNG processing facilities, operated by ExxonMobil and located 20 kilometers northwest of Port Moresby, Papua New Guinea,

The facility will receives supplies from the Elk-Antelope gas field.

Also, the project includes the use of 2 million tonnes per year of liquefaction capacity in the existing trains of PNG LNG.

Most Popular

Venture Global’s Plaquemines LNG to commission third jetty

US LNG exporter Venture Global LNG has received approval from the US FERC to introduce hazardous fluids to the third jetty at its Plaquemines LNG export plant in Louisiana.

Samsung Heavy, KR to develop three-tank LNG carrier

South Korean shipbuilder Samsung Heavy Industries signed a memorandum of understanding with compatriot classification society KR to jointly develop a 174,000-cbm LNG carrier featuring three cargo tanks.

Another FSRU arrives in Egypt

The 160,000-cbm FSRU Energos Eskimo has arrived in Egypt from Jordan, according to shipping data. The unit is one of four FSRUs that will serve a charter deal with Egypt's EGAS as the country seeks to meet its growing demand for natural gas.

More News Like This

TotalEnergies seals Ksi Lisims LNG deal

French energy giant TotalEnergies has signed a 20-year deal with Ksi Lisims LNG to buy LNG from the latter's planned export project in Canada. In addition, TotalEnergies will acquire a 5 percent stake in Houston-based Western LNG, the developer, shareholder, and future operator of the Ksi Lisims LNG project.

ExxonMobil CEO expects Golden Pass LNG launch by end of this year

ExxonMobil CEO Darren Woods expects the QatarEnergy-led Golden Pass LNG export project in Texas to produce first LNG volumes by the end of this year. Separately, Golden Pass LNG is also seeking approval from the US FERC to increase peak workforce up to 10,300.

TotalEnergies targets Mozambique LNG restart by mid-year, CEO says

France's TotalEnergies and its partners in the giant Mozambique LNG project are planning to restart construction on the 12.8 mtpa project by the middle of this year, according to Patrick Pouyanne, CEO of TotalEnergies.

Three Marsa LNG contracts awarded in Oman

Three firms have secured contracts for the TotalEnergies-led Marsa LNG bunkering project worth about $1.6 billion, according to Oman's Sohar Port and Freezone.