THE P’nyang gas project in Papua New Guinea (PNG) will provide some four years of additional construction activity after Papua LNG, according to a statement from Santos.
“This would involve a multi-billion kina investment, driving continued economic growth for the nation as well as provinces involved in the project,” the company said.
“Infrastructure tax credit projects in support of infrastructure needs in Western and other involved provinces are expected to commence this year.” The company added that upon completion, the P’nyang project would make available up to five per cent of gas produced to Western or another location to support the Government’s electrification programme.
“The focus on national content would support local job creation in Western and other involved provinces, with the PNG workforce and local businesses benefitting from economic opportunity as well as training and skills development programmes.
“In parallel, social investment initiatives in collaboration with the provincial and national Governments as well as community stakeholders are designed to further enhance community livelihoods.”
The P’nyang field is located within petroleum retention licence 3, which covers 105,000 acres (425 square kilometres).
The field is estimated to have 4.36 trillion cubic feet of gas.
Esso PNG P’nyang Ltd, a subsidiary of ExxonMobil Corporation, operates the licence and, together with Ampolex (PNG) Ltd, has a 49 per cent interest.
Affiliates of Santos and JX Nippon have a 38.5 per cent interest and 12.5 per cent interest respectively.
Santos managing director and chief executive officer Kevin Gallagher welcomed the gas agreement, signed on Tuesday, and looked forward to supporting the operator to develop the resource for the region and as long-term backfill for existing LNG infrastructure.
“The signing of the P’nyang gas agreement demonstrates the commitment of all parties to the project and will bring economic benefits for the people of PNG when the project is developed,” he said.
Gallagher said P’nyang would provide landowner benefits under a benefit sharing agreement to be negotiated in the future.
“Development of P’nyang will create local and regional jobs and business opportunities, provide training and skills development opportunities and help build stronger communities.”
The National / Pacific Mining Watch
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