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PNG LNG


Location

Papua New Guinea.

Participants

Santos (13.5%)
ExxonMobil (operator)
Oil Search
Nippon Oil
State (NPCP, MRDC and Petromin)

Overview

Sanctioned in December 2009, the PNG LNG project will develop gas and condensate resources in the Hides, Angore and Juha fields and associated gas resources in the operating oil fields of Kutubu, Agogo, Gobe and Moran in the Southern Highlands, Hela and Western Provinces of Papua New Guinea.

The gas will be transported by pipeline to a gas liquefaction plant 25 kilometres north-west of Port Moresby with a capacity of 6.9 mtpa. PNG LNG has binding LNG sales agreements with four Asian buyers.

Project Status

As at the end of March 2014, the project is more than 95% complete and on track for first LNG cargo delivery ahead of schedule in mid-2014, within the current budget.

Production of condensate from the Hides gas fields commenced in late March as part of the commissioning and start-up activities at the Hides Gas Conditioning Plant. The condensate will be transported to the Kutubu Central Processing Facility, blended with crude oil, and sold for export via the offshore Kumul Terminal.

Mechanical completion was achieved for all subsystems required for first gas production at the Hides Gas Conditioning Plant in early March following introduction of commissioning gas in December 2013. At the end of March, the Hides B1 and B2 wells were brought on line and are flowing gas into the export line to the LNG Plant as part of start-up operations. Four development wells are now completed and perforated and two further development wells have been successfully drilled and completed and are awaiting perforation. Drilling is currently underway on the G pad wells and on the produced water disposal well. Construction of the onshore pipeline and the spineline from wellpad B to the Hides Gas Conditioning Plant are complete.

At the LNG plant, the Train 1 process, storage and loading systems have been dried and are ready for start-up. Three of the five Train 2 refrigeration compressors have completed a mechanical run test, and the contractor requested the Train 2 completion acknowledgement from the Operator in early April. The jetty and LNG tanks are ready for start-up, and the low-pressure flare has been lit to support drying of storage and loading systems.

For more information please go to www.pnglng.com .

First production

PNG LNG is on track for first LNG in mid-2014.