Papua LNG

TotalEnergies chairman and chief executive officer, Patrick Pouyanné affirmed his commitment when meeting Papua New Guinea Prime Minister James Marape on the weekend.

They met to discuss the status of the Papua LNG project.

Papua LNG believes in the importance of investing in law and order, as throughout close consultations with the local communities, often a breakdown of law and order and the lack of transportation have been two of the key issues raised. 

Papua LNG recognizes the significance of fostering the partnership between the Provincial Government and the local communities as well as the need to uphold community safety through the vital operations of police in and around the Project Area of Influence. 

This was announced at the inaugural Supplier Forum on December 4. Made know at the Forum was the Project’s first Engineering, Procurement, Construction (EPC) contract awardee for the Upstream Early Works & Infrastructure Package, awarded to Vinci Construction Terrassement SpieCapag Niugini Limited (VCTSC). 

Along with the latest news of the Project, VCTSC Deputy Project Director Jean-Paul Chauvin, gave an in-depth presentation of the company, the expected scopes of work and the various business opportunities available for interested local suppliers.

In Parliament, she said Papua LNG recently lodged an application for petroleum development license to the Department for Petroleum and Energy ahead of its final investment decision.

Peter says in the Papua LNG Gas Project Agreement signed between the State and Project partners, the foundation gas volume to be provided from the Elk/Antelope fields is projected to be at 10.3 Trillion Cubic Feet TCF.

The deal was sealed with Fabtech International, a Dubai based Fabrication Facility Operator.

KPHL Managing Director, Wapu Sonk said, “This Facility is expected to have a capacity of 20,000 tonne per year, producing steel, mechanical, piping and electrical modular packages”

He said this is expected to provide direct employment for 1000 skilled Papua New Guineans and indirect jobs for up to 3000 more people when it is operating at full capacity. The number of jobs could double if the facility is run 24hrs per day.”

Prime Minister, James Marape and the senior government Ministerial team were briefed by Senior Executives of TotalEnergies at the FEED announcement on Monday night, 6th March. 

The Total team was led by Julian Pouget, Senior Vice President for the Asia Pacific region who was present during the announcements.

“We were pleasantly informed that by next year construction of multi-billion Kina worth of infrastructures would start and run until first gas in 2027,” PM Marape said. 

Papua LNG is expected to have liquefaction capacity of up to six million tonnes of LNG per annum with first production expected by the end of 2027 or early 2028.

Following pre-FEED studies, the Papua LNG partners have selected a concept using four electric LNG trains (e-trains) with a combined capacity of four million tonnes per annum to be developed within the existing PNG LNG project site.

Papua LNG has also secured access to up to two million tonnes of existing liquefaction capacity from PNG LNG.

He said it was an eye-opener upon his arrival in the country as he spoke very highly of the peoples’ hospitality and friendliness.

“I discovered the many welcoming people and also the site which is so beautiful,” he said.

However, due to the remoteness of Purari and its communities, Mr Pouget described the logistics aspect of the operation to be very challenging, given there are no roads within the project area, which can only be accessed by air and river.

The PM was speaking from Port Moresby on Sunday 6^th January in relation to negotiations between the PNG team and China’s giant petroleum company, Sinopec, held recently in Beijing.

Sinopec is acronym for China Petroleum & Chemical Corporation. It is the biggest supplier of oil and petrochemical products in China, is one of the biggest in the world and listed as a state-owned enterprise.

They are the Papua LNG Project, New Porgera Mine, Wafi-Golpu Mine, P’nyang LNG, Pasca LNG and Pandora LNG.

Marape announced this when responding to the Ministerial Statement by Treasurer Ian Ling-Stuckey on the ‘2020 Final Budget Outcomes (FBO) and 2021 Mid-Year Fiscal and Economic Outlook (MYEFO) and the Way Forward’ on Wednesday.

“We are working very hard, and in just two years, we are discussing Papua to ensure that it takes off, Wafi-Golpu, New Porgera, Pandora, Pasca and P’nyang.