TotalEnergies sells Papua LNG stake to JX Nippon

France’s TotalEnergies, one of the world’s largest LNG players, has sold a small stake to Japan’s JX Nippon Oil & Gas Exploration in the planned Papua LNG export project in Papua New Guinea.

TotalEnergies said in March it has signed a head of agreement with JX Nippon to sell a stake in Papua LNG.

JX Nippon Oil & Gas Exploration is an affiliate of Eneos and already holds a 4.7 percent interest in the ExxonMobil-led PNG LNG project.

The Japanese firm said in a statement on June 2 that it has concluded a farm-in agreement with TotalEnergies EP PNG, a unit of TotalEnergies in respect of a 2.58 percent (pre-Papua
New Guinea state back-in) participating interest in PRL15 located onshore in Papua New Guinea.

This transaction remains subject to the approval of PNG’s department of petroleum and energy.

JX Nippon did not provide the price tag of the deal.

Image: JX Nippon

First production by end of 2027 or early 2028

JX Nippon said demand for LNG as a “transition energy” is expected to remain “strong” globally.

The Papua LNG project will be the company’s fourth LNG project following Malaysia LNG Tiga, Tangguh LNG in Indonesia, and PNG LNG.

Also, the LNG project plans to commercialize natural gas of onshore Elk-Antelope gas fields.

The LNG project will have liquefaction capacity of 5.6 million metric tons of LNG per year with first production expected by the end of 2027 or early 2028.

Following pre-FEED studies, the Papua LNG partners have selected a concept using four electric LNG trains (e-trains) with a combined capacity of four million tonnes per annum.

The partners will build the trains within the existing PNG LNG terminal in Caution Bay, operated by ExxonMobil.

“With the full support of the government of Papua New Guinea, activities relating to FEED, LNG marketing, and financing are progressing,” JX Nippon said.

Papua LNG partners are targeting to achieve the final investment decision by the end of 2023 or early 2024, it said.

TotalEnergies currently has a 40.1 percent operating stake in the LNG export project, ExxonMobil has 37.1 percent, and Santos owns a 22.8 percent interest.

Papua New Guinea may exercise a back-in right of up to 22.5 percent interest in the project.

Most Popular

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

GTT secured orders for nine LNG carriers in Q1

French LNG containment giant GTT received orders for nine liquefied natural gas carriers in the first quarter, while its revenue rose 31.6 percent compared to the same period last year.

QatarEnergy LNG carrier named in China

China’s Hudong-Zhonghua hosted a naming ceremony for one 174,000-cbm liquefied natural gas (LNG) carrier built as part of the massive QatarEnergy shipbuilding program.

More News Like This

Santos: PNG LNG shipped 28 cargoes in Q1

The ExxonMobil-operated PNG LNG project in Papua New Guinea shipped 28 cargoes of liquefied natural gas in the first quarter of 2025, up by one cargo compared to the same quarter last year and one cargo less compared to the prior quarter, according to shareholder Australia’s Santos.

TotalEnergies inks initial Dominican LNG supply deal

France's TotalEnergies has signed a heads of agreement with ENADOM, the joint venture between AES Dominicana and Energas in the Dominican Republic, to supply liquefied natural gas (LNG) to the latter.

TotalEnergies: average LNG price up in Q1

French energy giant TotalEnergies, one of the world’s largest LNG players, reported a rise in its average price for equity liquefied natural gas sales in the first quarter of this year.

NextDecade, TotalEnergies seal 20-year LNG SPA

French energy giant TotalEnergies has exercised its option to buy liquefied natural gas (LNG) from the planned fourth train at NextDecade's Rio Grande LNG facility in Texas.