THE Papua LNG project in Papua New Guinea is scheduled to start in 2027, Total E and P managing director Jean-Marc Noiray says.
He said the company was mobilising its project team after three years of delays.
“Our project of Papua LNG, after three years of delay, we are again, mobilising our project team, targeting front end engineering and design (Feed) entry through to 2022, final investment decision final investment decision (FID) in the fourth quarter 2023 and start four years after in the fourth quarter of 2027,” Noiray said.
He said this during the second European Union – Papua New Guinea Business, Trade and Investment Conference yesterday.
“Total will continue with its partners, investing US$10 billion (about K34.29 billion) from FID, knowing that we have already invested US$2 billion (about K6.85 billion) in exploration, pre-Feed and others,” Noiray said.
“So this investment will allow to produce 5.6 million tonnes per year in LNG (liquefied natural gas) over 15 years, adding to the 8 million tonnes per year produced from the PNG LNG.
“Investment of the project will amount to about one-third of the gross domestic product (GDP) and will add a major source of income to the country and direct and indirect jobs.
“The project will impact two provinces – Gulf, for the upstream processing facilities, and Central,” Noiray said.
“The two new trains of production will be constructed within the fence of the existing PNG LNG, to maximise the synergies.
“The constraint of building simultaneously a train has been lifted as P’nyang will be developed into the existing PNG LNG facility.
“Our constraints are foreign exchange limitation, unreliable utilities, lack of infrastructure, security or law and order, and shortage of expertise and skilled workers.”
The National / Pacific Mining Watch