PNG LNG

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.

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 2^nd .

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.

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.

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.

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 2^nd 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.

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.

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.

The PNG Extractive Industries Transparency Initiative (EITI) 2014 Report states that the 30 year lifespan of the PNG LNG Project will contribute K67 billion in taxes in addition to dividends from its equity in the Project.

The Government has 16.8 percent stake in the PNG LNG project, managed by Kumul Petroleum Holdings Limited (KPHL), of which 2.8 percent is managed by the Mineral Resource Development Company on behalf of the landowners.