Report: PNG LNG puts six cargoes up for sale

ExxonMobil-operated PNG LNG project is reportedly looking to sell six cargoes for delivery between May and October. 

The tender is expected to attract a lot of interest, however, could signal the drop in demand from the project’s long-term customers, Reuters reports, citing trade sources.

Peter Botten, managing director of Oil Search, a company owning a 29 percent stake in the PNG LNG project, said that although the spot LNG prices are expected to soften from current levels through 2017, the long-term LNG market fundamentals remain strong.

He further added that Asian buyers are expected to have substantial new LNG requirements early next decade.

Long-term consumers of the Papua New Guinea LNG project include China Petroleum and Chemical Corporation (Sinopec), Japan’s Osaka Gas, Tepco and Taiwan’s CPC Corporation.

ExxonMobil said the project produced 7.9 million tons of LNG in 2016, an increase of 14 percent from the original design specification of 6.9 million tons per annum.

LNG World News Staff