In a commitment to its extractive sector, the State of Papua New Guinea and co-venturers of the P’nyang LNG Project, including ExxonMobil affiliates, Santos and JX Nippon have inked the P’nyang LNG Project Fiscal Stability Agreement.
This agreement, a follow-up to the earlier P’nyang LNG Project Gas Agreement signed in February 2022, marks a crucial milestone for the project, positioning it to potentially become the country’s third LNG export venture.
Prime Minister Hon. James Marape hailed the agreement, thanking ExxonMobil for its dedication to Papua New Guinea's development. He emphasized the project's role in fostering sustained economic growth, extending the development window for major LNG projects from 4 to 8 years.
The deal also paves the way for the initiation of Infrastructure Tax Credit projects in the Western Province, as outlined in the project's gas agreement.
Esso PNG P’nyang Limited Chairperson, Tera Sandro expressed gratitude to the PNG Government for its continued partnership, highlighting the significant benefits the project would bring to all stakeholders and enhancing PNG's status as an LNG exporting nation.
The proposed ExxonMobil-operated P’nyang LNG Project is set to construct new upstream facilities in the Western Province, leveraging existing infrastructure. Pending a final investment decision by the co-venturers, the project's development is slated to commence after the Papua LNG Project, supporting Papua New Guinea's ongoing economic development.
The P’nyang field, situated within Petroleum Retention License 3, spans 105,000 acres and is estimated to hold 4.36 trillion cubic feet of gas. Esso PNG P’nyang Ltd and Ampolex (Papua New Guinea) Limited hold a combined 49 percent interest, with affiliates of Santos and JX Nippon owning 38.5 percent and 12.5 percent.
Landowner benefits are to be negotiated under a future benefit-sharing agreement following the Oil and Gas Act.
The signing of the P’nyang LNG Project Fiscal Stability Agreement underscores PNG's dedication to fostering investment and economic prosperity through strategic partnerships in the extractive sector.