ExxonMobil reported the $19 billion PNG LNG project has
started producing LNG in Papua New Guinea ahead of schedule.
Production from the first LNG train will increase over the
coming weeks and the first cargo is expected to be shipped to
Asia markets before midyear.
Work on the second train is progressing and LNG production
from this unit is expected to start in the next several
The project, which is operated by ExxonMobil affiliate
ExxonMobil PNG, is expected to produce more than 9 trillion
cubic feet of gas over an estimated 30 years of operations.
The PNG LNG project exemplifies ExxonMobils
leadership in project execution, advanced technologies and
marketing capabilities, said Neil W. Duffin, President
of ExxonMobil Development Company. Project
revenue and profitability
are underpinned by long-term LNG sales contracts covering
more than 95% of the plants capacity.
is an integrated
development that includes gas production and processing facilities
in the Southern
Highlands, Hela, Western, Gulf and Central provinces of Papua
New Guinea. Approximately 435 miles of pipeline connect the
, which include a gas
conditioning plant and liquefaction and storage facilities
with capacity of 6.9
million tonnes of LNG per year.
Flooding, minimal pre-existing infrastructure and extremely
steep slopes were among obstacles that were overcome in
constructing the project. Pipe had to be airlifted in some
areas because the soil could not support heavy machinery and
lack of infrastructure required construction
roads, communication lines and a new airfield.
is optimally located to
serve growing Asia markets where LNG demand is expected to
rise by approximately 165% between 2010 and 2025, to 370
million tonnes per year, said Duffin.
In addition to ExxonMobil PNG, co-venturers include Oil
Search, National Petroleum Company of PNG, Santos, JX Nippon
Oil & Gas Exploration, Mineral Resources Development
Company (representing landowners) and Petromin PNG Holdings.
ExxonMobil continues to assess and advance new expansion
opportunities in Papua New Guinea.