A concept on the next phase of the country’s LNG Expansion is expected to be presented to the Government by the fourth quarter of 2017.
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.
"Key areas of discussion include establishing integration principles, including capacity and cost sharing, the optimal commercial model for asset ownership and financing.
“Whether to joint or equity market the LNG and reaching alignment on future exploration acreage and activities.”
“Oil Search believes the most likely development scenario will involve the sharing of downstream infrastructure.
This will be through the location of at least eight million tonnes per annum of additional LNG capacity, on the existing PNG LNG Project plant site, so that all stakeholders can benefit from the considerable construction and operating synergies available.”