Negotiations between the PNG LNG Project participants and several short-listed parties regarding the final mid-term tranche of 0.45 MTPA that is being marketed from the PNG LNG Project, continued during the 4th Quarter of 2018.
Oil Search Managing Director, Peter Botten, said these negotiations are expected to be completed in the first quarter of 2019 and will increase the total sales under contract from PNG LNG to 7.9 MTPA.
He said the Oil Search equity marketing team continued its engagement with potential buyers for offtake from their share of LNG from the proposed Papua LNG Project.
Botten said PNG is well placed, both geographically and in terms of timing, to capture off take agreements for supply into Asia commencing in 2024, when significant additional supply is required to meet both new demand growth as well as contestable demand from expiring contracts.
“Many buyers are seeking geographic and seller diversification, which are strong drivers in support of new LNG sellers such as Oil Search.”