Tuesday, February 20, 2018

More work needed for PNG LNG Expansion

Expansion to the PNG LNG project will still undergo approval and discussion stages before actual engineering design stages proceed.

Oil Search managing director Peter Botten gave the update yesterday during the release of the 2017 full year results of the oil and gas company.

The expansion will be for the Papua LNG’s Elk Antelope in Gulf and P’nyang project in the Western Province that are expected to increase annual volume of LNG by an additional 8 million tonnes from the current 7 million tonnes produced annually.

“Over the last month or so strong alignment between ourselves Exxon(Mobil) and Total what might be a concept of an LNG expansion of PNG LNG and development of Papua LNG,” Mr Botten said.

“Although there is still a lot of work to do and this is a concept which requires approval from our respective joint ventures.”

“The reality is this certainly will see a potentially attractive economic development of both an expansion of PNG LNG via one train (gas processing system), two trains expansion supported by Papua LNG of the Elk Antelope, and one train supported by PNG LNG P’nyang.”

He said the concept follows substantial engineering works to look at optimal development process for PNG LNG and Papua LNG.

“How they aim to operate in any development in the downstream portion and the train construction in the Port Moresby area.”

“We believe will go to our joint venture partners and licences over the next few weeks and also the relevant joint ventures will engage with government in the short term to progress the key government approval processes, the gas agreements and these projects.”

“We think it is a smart capital efficient way of expanding and developing PNG LNG PNG as a next phase of development, but there is substantial amount of work needed,” Mr Botten said.


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