"Papua New Guinea's KUMUL Petroleum Holdings Limited (KPHL) to Export First LNG Cargo Outside Port Moresby"
Managing Director Wapu Sonk has announced that KUMUL Petroleum Holdings Limited (KPHL) is set to load its inaugural liquefied natural gas (LNG) cargo outside of Port Moresby today for sale in the spot market. Sonk revealed that the buyer, PetroChina, has dispatched its tanker, named Wudang, to Caution Bay to retrieve the cargo.
The current market value for a single cargo is estimated to range between US$30 million (K115 million) to US$40 million (K153.8 million). The Wudang, with a capacity of 172,000 cubic meters, is primed to transport the LNG.
Sonk emphasized that this loading represents KPHL's portion of the surplus volumes generated by the project. While the long-term contracts initially covered 6.6 million tonnes per year (MTPA) of LNG, the project's current production stands at nearly 8.5/8.6 MTPA. Consequently, approximately 2 MTPA of LNG falls outside of these contracts.
KPHL, in accordance with agreements signed with joint venture partners in late 2023, has the authority to market its surplus share on the spot market. Sonk elaborated, stating, "KPHL sold its first cargo in April to PetroChina on an FOB basis, meaning they (PetroChina) bring their LNG tanker to load the cargo."
Following a recent acquisition of 2.6%, KUMUL Petroleum Holdings now holds a 19.37% stake in the PNG LNG project.
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