Downstream LNG process study underway

A conceptual feasibility study is being undertaken for an energy hub in PNG which will include a nationally owned downstream LNG processing facility.

The standalone facility is part of an energy hub conceptualised to be located in the Kikori District of Gulf Province.

Called the ‘Kikori Energy Hub (KEH)’, it is intended to be an extension of the proposed ‘Western Pipeline Project’ concept pushed by Kumul Petroleum Holdings Limited (KPHL).

On Friday, KPHL Managing Director, Wapu Sonk, executed an agreement with KBR, a global oil and gas engineering and construction services provider, to provide conceptual development and feasibility analysis services for the KEH.

In a statement, Sonk said with the completion of the Pre-Front End Engineering Design (Pre-FEED) of the Western Pipeline project, they are now focusing on downstream commercialisation options to produce an economically sound project and how best it can create In Country Value (ICV) to the people of Papua New Guinea whilst maximising our Return on Investment (ROI).

“The extension of the Western Pipeline Project scope to now include a standalone downstream LNG process development, combined referred to as the Kumul LNG Project, is a natural progression.

“Whilst an Economic Impact Assessment will be undertaken to assess the ICV to PNG, it is estimated up to 30,000 local employment opportunities will be created during the construction phase, if the Project is proved feasible,” he said.

Project Director for the Kumul LNG Project, Jason Pollock, said the scope of the concept feasibility study will include a mid-scale LNG liquefaction and regional export facility to encourage future PNG electrification via gas driven generation in remote areas.

There will also be an 180MW power generation facility, of which up to 100MW has been allocated for Western and Southern Highland electrification via future grid connection, a methanol process facility to enable local petrochemical bi-product production, and a condensate stabilisation, storage and regional export facility.

The scope of the conceptual feasibility study includes location and technology screening studies for the LNG liquefaction facility that will identify the most economically feasible concept, inclusive of a floating LNG facility, a gravity based structured LNG facility or an onshore based LNG facility.

The concept study is scheduled for completion later this year.

Author: 
Cedric Patjole