First PNG LNG cargo heads to Japan

The first shipment of liquefied natural gas from ExxonMobil PNG Limited’s US$19 billion PNG LNG Project has left Papua New Guinea carrying a cargo bound for Japan for Tokyo Electric Power (TEPCO).

“This announcement is a historic moment for Papua New Guinea,” ExxonMobil PNG Limited Managing Director Peter Graham said. “This is the country’s largest resource project and it has taken the effort of many thousands of people to bring it to fruition. With the support of government, our co-venturers and the local community, we are proud to celebrate the safe completion and first cargo from the PNG LNG Project.”

Graham said the Project startup positions Papua New Guinea as a resource-rich nation uniquely placed to deliver natural gas to meet the growing demand of Asia markets over the long term.

“Revenue from the PNG LNG Project will support Papua New Guinea’s continued economic and social development,” he said. “The PNG LNG Project demonstrates to the world what Papua New Guinea is capable of delivering.”

Production from the first train started in April, and production from the second train has also started as additional wells came online.

Project construction began in 2010, and took more than 191 million work hours to complete. At peak, more than 21,000 people were employed by the project, including more than 9,000 Papua New Guineans. More than 10.7 billion Kina has been spent with Papua New Guinea businesses.

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 of supplemental roads, communication lines and a new airfield.

“This Project has brought significant economic benefits to our country that will last for generations to come,” said Papua New Guinea Prime Minister Peter O’Neill.

“Not only will the people of Papua New Guinea now benefit; their children and grandchildren will continue to enjoy the benefits and positive effects from this valuable resource development for many years to come,” said O’Neill.

The PNG LNG Project 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. More than 700 kilometres of pipeline connect the facilities, which include a gas conditioning plant in Hides, and liquefaction and storage facilities near Port Moresby with project capacity of 6.9 million tonnes of LNG per year.

The Project is expected to produce more than 9 trillion cubic feet of gas over the estimated 30 years of operations.

The PNG LNG Project will provide a long-term supply of LNG to four major customers in the Asia region including China Petroleum and Chemical Corp. (Sinopec), Tokyo Electric Power Co. Inc. (TEPCO), Osaka Gas Co. Ltd., and CPC Corp. Taiwan.

The PNG LNG Project is operated by ExxonMobil PNG Limited in co-venture with Oil Search Limited, National Petroleum Company of PNG, Santos Limited, JX Nippon Oil & Gas Exploration Corporation, Mineral Resources Development Company (representing landowners) and Petromin PNG Holdings Limited.