Total and partners ink deal with PNG for Papua LNG project

Total and its partners ExxonMobil and Oil Search have finally signed a fiscal stability deal with Papua New Guinea for the Papua LNG project.

The signing of this deal gives effect to the gas agreement the trio and the PNG government announced in April 2019. It will help in de-risking the proposed 5.4 million tons per annum project.

PNG Prime Minister James Marape said in a statement this deal “demonstrates Papua New Guinea’s commitment to the Papua LNG project and gives comfort and encouragement to the developers to progress the project.”

Total and partners ink deal with PNG for Papua LNG project
Image: Total

Previously, the partners planned to develop Papua LNG with an expansion of ExxonMobil’s PNG LNG adding three new production trains at the Caution Bay plant.

Under the deal signed this week, the partners would build two new production units at the PNG LNG site, sourcing gas from the Elk Antelope gas fields.

This means that the partners need to redesign the project before any engineering work.

Total operates the Elk and Antelope onshore fields and is the largest shareholder of the PRL-15 permit with a 31.1% interest, alongside partners ExxonMobil (28.3%) and Oil Search (17.7%), post the State back-in right of 22.5%.

- Advertisements -

Most Popular

NextDecade names new COO

US LNG firm NextDecade, the developer of the Rio Grande LNG export project in Texas, has appointed Tarik Skeik...

Cheniere’s Corpus Christi LNG expansion project 62.4 percent complete

The Stage 3 expansion project at Cheniere’s Corpus Christi LNG export plant in Texas is 62.4 percent complete, and...

Australia’s Woodside to buy Tellurian

Australian LNG player Woodside has entered into a definitive deal to buy Tellurian, the developer of the Driftwood LNG...

More News Like This

TotalEnergies says average LNG price slightly down in Q2

French energy giant TotalEnergies, one of the world’s largest LNG players, reported a drop in its average price for...

Malaysia’s Bintulu LNG plant to get first supplies from Jerun gas field

Malaysia's giant Bintulu LNG plant, operated by Petronas, will soon receive its first gas supplies from the Jerun field,...

Hudong-Zhonghua to build one LNG bunkering vessel for TotalEnergies

French energy giant TotalEnergies has selected China's Hudong-Zhonghua and Spain's Ibaizabal for the construction and charter of one LNG...

Golden Pass LNG to speed up pipeline construction

QatarEnergy and ExxonMobil are seeking approval from US energy regulators to increase the peak workforce to speed up the...