FIFTY-two liquefied natural gas cargo was exported in first half of this year with more than 120 cargo to date since the PNG LNG project start-up last year, according to a roadshow information.
The National Petroleum Company PNG had said the value for each LNG shipment was between US$50m (K138m) and US$60m (K165.8m).
Oil Search Macquarie US Roadshow information released recently noted that PNG LNG had established an excellent reputation as a reliable gas supplier.
It was highlighted that there was solid demand for PNG LNG spot cargo.
The full contractual volumes being taken, with ramp-up underway to plateau of 6.6 MTPA in second quarter of next year.
“Good demand for spot volumes, more than 85 per cent of spot cargo has been sold to contract customers.”
The roadshow information said PNG LNG product was being well received by market, reflecting:
- High heating value gas – well suited to Asian reticulation network
- proximity to Asian LNG markets; and,
- Diversification source
- Oil search is the second largest partner in the PNG LNG project with a 29 per cent stake after ExxonMobil PNG Ltd.
Oil Search has 60 per cent interest in all PNG’s producing oil fields, operated by the company.
It has market capitalisation AS$10bn.
The company’s net profit was up 49 per cent to US$227.5 million, driven by near tripling of production operating cash
flow more than double first half of last year.
Interim ordinary dividend tripled, from 2 US cents to 6 US cents, 40 per cent payout ratio on first half of this year’s core profit.
There is good progress on gas commercialisation activities in PNG, with potential PNG LNG expansion and Papua LNG project among most competitive new LNG projects globally.