« BackNews: Total Agrees LNG Project In Papua New Guinea
Total Agrees LNG Project In Papua New Guinea
Total, together with ExxonMobil and Oil Search, have confirmed an arrangement with the Independent State Of Papua New Guinea for an LNG project in the area.
The Gas Agreement defines the framework for the initiative, allowing the oil giants to begin the Front-End Engineering Design (FEED) phase of the job.
According to Total, once the project goes ahead, it will provide two LNG trains of 2.7 million tons per annum (Mtpa) capacity that will unlock more than one billion barrels of oil equivalent of natural gas resources. Its intention is to produce 5.4 Mtpa by expanding an existing plant in Caution Bay.
Chairman and chief executive officer of Total Patrick Pouyanne said this agreement is a “major milestone”, as it confirms the commitment of all partners to enable the project to go ahead.
“We are very pleased with the progress of this competitive LNG project that benefits from the brownfield synergies with existing liquefaction facilities and the proximity to Asian markets. It will further strengthen our position in the Pacific basin and ensure our future LNG portfolio growth,” Mr Pouyanne stated.
While Total will manage the gas production of the site, ExxonMobil will develop it by expanding the Caution Bay facility.
This is not the only LNG project Total is involved in, as it recently revealed its commitment to a Driftwood LNG initiative in Louisiana, USA. Earlier this month, it signed agreements with Tellurian for the project, investing $500 million (£383.35 million) into Driftwood LNG for 1 Mtpa of LNG.
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