PNG LNG

PNG LNG LOs set to receive royalty

The Mineral Resources Development Company will begin the process of opening bank accounts for clans, which began early this week.

PDL 7, also known as Hides 4, is where the PNG LNG Project Conditioning Plant is located.

The four main activities the MRDC and partners will conduct in PDL 7 include:

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Negotiations on LNG sales continue

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.

Account opening exercise for Pipeline begins

Per the advice of the Department of Petroleum and Energy, MRDC is now in the process of rolling out its program starting in segment 7 (Gulf/SHP Border) from Friday, November 2nd .

Segment 7 has the longest length of Pipeline running through it, covering 37 clans who together hold a 44 per cent interest.

This process will see that the landowners of the pipeline start to receive their royalty and equity payment from the PNGLNG Project.

LNG gas to fuel new power station

Expected to be fully functional by January 2019, the power project will use natural gas supplied by the PNG LNG project to feed six high efficiency reciprocating gas engines and generators.

It will produce 58MW base load power to the Port Moresby power grid through a new 66kv power line and substation network.​

In a tour of the power project adjacent to the PNG LNG Plant, operator Niu Power says the project is halfway done.

Exxon resumes PNG LNG productions

LNG exports are expected to resume soon.

One train is currently operating at the LNG plant near Port Moresby. The plant’s second train is expected to restart as production is increased over time.  

During the period that production was shut-in, ExxonMobil was able to complete unrelated maintenance scheduled for later in the year to allow for more efficient operations in the months ahead.

Fiscal certainty, negotiations key to LNG expansion

ExxonMobil managing director, Andrew Barry, said both these areas were crucial as the joint venture partners head in to Front End Engineering Design (FEED).

Barry said this during the 2nd Petroleum and Energy Summit in Port Moresby.

Also critical are the various commercial and project discussions and agreements that need to be made before a final investment decision is made.

LNG revenue to be affected: Executive

Chairman of FGE, Dr. Fereidun Fesharaki, says this is expected in the short term while the medium to long term looks promising with global prices expected to stabilise.

In his Global Energy Industry overview during the 2nd Petroleum and Energy Summit on Monday (March 19), Dr.  Fesharaki said the recent earthquake in the highlands affected the potential revenue to be made from the increase in LNG prices currently experienced.

He, however, had further bad news, saying the estimated resumption of the PNG LNG Project could come at a time when sport prices were also falling.

VIDEO: Need for clan vetting

This is the main reason why Highlands LNG landowners are demanding that no payment be made to their coastal counterparts.

 

Meredith Kuusa with more 

VIDEO: PNG LNG landowners equities

Landowner representatives from Angore, Juha  and Hides gas fields held a joint media conference calling on the Government to seriously address the non-payment of landowners equities.
The landowners made their intentions known following the media reports that landowners from the LNG Plant Site within the Papa/Lealea were to receive their payments after successfully meeting all requirements as per the Oil and Gas Act.

 

Cedric Patjole with more 

 

Concept on LNG expansion expected

Oil Search revealed in its half year results report, that discussions between them, ExxonMobil, operator of both the PNG LNG Project and P’nyang, and Total SA, operator of Elk-Antelope, are ongoing.

The report states that an aligned view on the proposed coordinated development concept to the Government, will enable fiscal discussions to commence, prior to Front End Engineering Design (FEED) entry.

“Engagement remains focused on evaluating the various integrated development options for the Elk Antelope and P’nyang gas resources.