Santos joins ExxonMobil and JX Nippon, the P’nyang project participants, in signing a gas agreement with the Papua New Guinea government concerning the PNG LNG plant.
The parties will execute a gas agreement that provides a clear framework for the project’s future development.
The signing of this deal specifically marks a major milestone for the project; it is setting out the fiscal framework and supporting project scoping and evaluation.
The ExxonMobil-operated P’nyang project would deliver LNG through new upstream facilities in Western Province linked to existing infrastructure. The infrastructure includes the PNG LNG plant near Port Moresby.
In addition, the project is subject to a final investment decision by its participants.
Upon completion, up to five per cent of P’nyang gas would also go to support the government’s electrification efforts.
Santos CEO Kevin Gallagher said he looks forward to supporting the operator to develop this resource for the region. This is also a long-term backfill for existing LNG infrastructure.
He also stressed that the P’nyang project is to start following the delivery of the Papua LNG project.
“The P’nyang project will provide landowner benefits under a benefit sharing agreement to be negotiated in the future. Development of P’nyang will create local and regional jobs and business opportunities, provide training and skills development opportunities and help build stronger communities.”
The gas field is within PRL3, located in the Western Province of Papua New Guinea. Santos has a 38.5 per cent interest in it.