First PNG LNG Delivery on Track for H2 of 2014

Esso Highlands Limited (EHL), operator of the PNG LNG project, said on Monday the project is more than 90 percent complete and is on schedule for first delivery of liquefied natural gas (LNG) during the second half of 2014.

“With more than 19,000 people currently working across the project, including more than 7,500 Papua New Guineans, we are making significant progress,” said Decie Autin, PNG LNG project executive.

“Antonov cargo aircraft operations into Komo airfield were completed on 13 August 2013, and installation of equipment delivered from Komo to the Hides Gas Conditioning Plant is currently under way.

“We have started the commissioning phase at the LNG plant in preparation for the first LNG production in 2014. This includes sending gas from Oil Search’s Kutubu Central Processing Facility to the LNG plant to provide power and enable testing and commissioning of key facilities and equipment.

“Drilling at Wellpad B is complete, and the drilling rig is being moved to the next wellpad to support further drilling activity,” Ms Autin said.

As forecasted last year, the estimated cost of the project remains at US$19 billion (excluding Port Moresby administration facilities and shipping ), reflecting disciplined project management in a unique and challenging working environment.

“ExxonMobil successfully develops projects around the world under a broad range of technical, operational and financial conditions,” Ms Autin said.

“The project has been able to maintain its schedule in PNG under unique and challenging circumstances. Our focus on disciplined project execution has allowed us to meet our scheduling commitments without further cost increases.”

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LNG World News Staff, September 2, 2013; Image: Oil Search