Papua LNG Terminal (Total)

From Global Energy Monitor
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Papua LNG Terminal (Total) is an LNG terminal in Central Province, Papua New Guinea.

Location

The terminal is planned for Caution Bay, Central Province

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Project Details

  • Owner:
  • Parent: ExxonMobil (60%), Total SA (40%)
  • Location: Caution Bay, Central Province, Papua New Guinea
  • Coordinates: -9.3392748, 146.9872856 (exact)
  • Capacity:
  • Proposed Capacity: 5.4 mtpa, 0.76 bcfd
  • Status: Proposed
  • Type: Export
  • Trains: 2
  • Start Year: 2023[1][2]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

The Total SA-led Papua LNG project in Papua New Guinea may export gas via Exxon Mobil Corp.’s existing PNG LNG facility to avoid the expense of building a new plant. According to ExxonMobil's InterOil, there is enough gas between the Elk-Antelope and P’nyang gas fields in Papua New Guinea to justify three LNG trains by 2023 to 2025, in addition to the existing two trains at PNG LNG. "The new trains could be for Papua LNG, PNG LNG or both combined. All those will be decided at a later time,” according to InterOil.[3]

The terminal would be 5 mtpa. Total will have a 40% stake.[4]

On July 21, 2016, ExxonMobil announced its intent to acquire InterOil of Papa New Guinea for US$2.5 billion.[5] On February 22, 2017, InterOil confirmed the completion of this transaction. [6] Front-end engineering design work is projected to start by early 2018, while the final investment decision is expected for the project by the beginning of 2019.[7]

In April 2019 Total and its partners ExxonMobil and Oil Search signed a gas agreement with Papua New Guinea defining the fiscal framework for the Papua LNG Project. The agreement allows the partners to enter the front-end engineering design (FEED) phase of study that will lead to the final investment decision in 2020.[8] The terminal will consist of two trains each with 2.7 mtpa capacity.[8]

In April 2020 it was reported that the project will likely be delayed due to the Covid-19 pandemic.[2] The energy and shipping brokerage Poten & Partners further disclosed that the final investment decision (FID) for the terminal had been delayed beyond the original FID timeframe of 2020-2021. It cited COVID-19, plunging demand and the crash in oil prices as the reasons for the delay. [9]

Articles and resources

References

  1. Papua LNG expected to drive development of Special Economic Zone in Gulf Province, Business Advantage PNG, Mar. 5, 2019
  2. 2.0 2.1 OPINION: Gas export projects hit by double blow of Covid-19 and industry slump, Upstream Online, Apr. 2, 2020
  3. Dan Murtaugh and Sharon Cho, "PNG Government Prefers Exxon, Total Pursue 2nd LNG Project," Bloomberg, September 21, 2016
  4. "LNG," Total, accessed Aug 2017
  5. "ExxonMobil to Acquire InterOil in Transaction Worth More Than $2.5 Billion | ExxonMobil News Releases". news.exxonmobil.com. Retrieved 2017-06-06.
  6. "InterOil Announces Completion of ExxonMobil Transaction". Seeking Alpha. Retrieved 2017-06-06.
  7. "Total-led group outlines Papua LNG project timeline," Oil & Gas Journal, 3 April 2017
  8. 8.0 8.1 Total, ExxonMobil, Oil Search Sign Papua LNG Agreement, Oil Gas Facilities, Apr. 11, 2019
  9. John Snyder FID’s delayed by global uncertainty Riviera Maritime Media, Apr. 24, 2020

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External resources

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