PNG LNG in mid-term deal with PetroChina

The ExxonMobil-operated PNG LNG project has entered into a mid-term sale and purchase agreement with PetroChina for the supply of liquefied natural gas starting in July 2018.

The mid-term deal is for the supply of about 0.45 million tonnes of  LNG per year over a three-year period from the LNG project in Papua New Guinea, according to a statement by Oil Search that has a 29 percent interest PNG LNG.

This deal takes the total contracted volumes from the LNG project to 7 mtpa, with 6.6 million tonnes of PNG LNG’s annual output already committed under long-term contracts to JERA, Osaka Gas, Sinopec and CPC.

ExxonMobil, on behalf of the PNG LNG project participants, is negotiating with a number of other parties for potential mid-term LNG supply agreements in lieu of spot sales.

These agreements are expected to be concluded in the near-term and increase sales under new mid-term agreements to 1.3 mtpa, the statement said.

The LNG export project includes the gas conditioning plant in Hides and liquefaction and storage facilities near Port Moresby with a capacity of 6.9 million tonnes per year.

LNG World News Staff