Partners launch integrated FEED studies for Papua LNG project

Partners in the Papua LNG project have launched fully-integrated front-end engineering and design (FEED) for the project in Papua New Guinea.

Papua LNG is being developed by TotalEnergies, which holds a 40.1% interest in the project, along with its joint venture partners ExxonMobil (37.1%) and Santos (22.8%). The State of Papua New Guinea may exercise a back-in right of up to 22.5% interest at the final investment decision planned by the end 2023 or early 2024.

The project is expected to have a liquefaction capacity of up to six million tonnes of LNG per annum with the first production anticipated by the end of 2027 or early 2028.

Following pre-FEED studies, the partners have selected a concept including four electrical LNG trains (e-trains) with a total capacity of four million tonnes per year that will be built within the existing liquefaction plant of PNG LNG in Caution Bay.

TotalEnergies said that the construction and operation of the electrical liquefaction trains will be delegated to ExxonMobil, operator of the PNG LNG project since 2014.

Papua LNG has also secured the use of two million tonnes per year of additional liquefaction capacity in the existing trains of PNG LNG.

According to the partners, integrating the Papua LNG midstream development within PNG LNG maximises the value of both projects and delivers increased capital efficiency by reducing upfront capital expenditure and maximising integration synergies. Furthermore, selecting e-trains and re-injection of reservoir CO2 is expected to reduce the carbon intensity of the project.

In the framework of this integration between Papua LNG and PNG LNG, TotalEnergies also announced the signature of a head of agreement with JX Nippon in the view to sell a 2% interest (post Kumul back-in right) in Papua LNG. JX Nippon is an affiliate of ENEOS and already holds a 4.7% interest in PNG LNG.

“The integrated FEED entry is a significant step in the development of the Papua LNG project. TotalEnergies and its partners are working closely with the government, the communities, and the local economic network to ensure the Papua LNG Project serves as a landmark on the societal and environmental front for the LNG industry”, said Julien Pouget, Senior Vice President Asia Pacific for Exploration & Production and Renewables at TotalEnergies.

“This project, strongly supported by the Papua New Guinea State, will contribute to the security of LNG supply, especially for customers in Asia, where LNG can substitute coal for power generation and participate in a substantial reduction of CO2 emissions in the region.”

Kerenga Kua, Minister of Petroleum and Energy of Papua New Guinea, added: “The Papua LNG project is a project of national significance for Papua New Guinea and will stimulate business confidence and provide a significant impetus for our economy.

“The Marape-Rosso government places high priority on the delivery of the Papua LNG project, we have an improved deal for our people and improved contribution of our national contractors and workforce. The government strongly supports the Papua LNG project and encourages all stakeholders including project partners to work diligently to deliver an “on time-on budget” project.”