Papua LNG is a liquefied natural gas (LNG) production project led by TotalEnergies in response to Papua New Guinea's desire to develop its gas resources.
Papua LNG project started with a significant gas discovery located within the Gulf Province, the Elk-Antelope field.
Elk was discovered in 2006 by Elk-1 and Antelope was discovered in 2007 by Elk-4.
The field lies south of the Bismarck range mountains and is approximately 120 km inland from the township of Kerema and 360 km northwest from Port Moresby, the capital city and major industrial center, and is now referred as the PRL15.
The upstream facilities are situated in a hilly area, between 50 and 400 meters above sea level, covered in dense jungle, with many rivers including one of the main accesses, the Purari River.
The coastal approach tends towards mangrove swamps.
The region is sparsely populated with little infrastructure.
As per now, the production of about 1 billion barrels of oil equivalent is planned. The gas will supply 4 electric liquefaction trains with a combined capacity of 5.6 million tonnes per annum (Mtpa).
Papua LNG will include 9 production wells and a gas processing plant, a 320km pipeline, 260km of which will be offshore, as well as liquefaction units in Port Moresby.
PRL 15 Venture
The Project is operated by TotalEnergies – the world’s second largest LNG player- which is committed to responsibly meet the world’s increasing demand for sustainable, reliable, and cleaner energy sources.
The Papua LNG project covers the Upstream part of the overall development and the Downstream part (the 4 electric liquefaction trains) which will be integrated in the existing PNG LNG plant.
The development and monetization of the gas resources involves the construction of major infrastructure such as a main pipeline to bring the gas from PRL 15 location in Gulf Province to a liquefaction plant installed on the coast of the Gulf of Papua, at Caution Bay near Port Moresby.
In the coming months, the construction of the LNG facilities will provide opportunities for professional training, employment, and contracts for the supply of goods and services.
The construction phase also manages environmental and social aspects to reduce risks and mitigate the impacts of a project of that scale.
The overall performance for a successful achievement of the Project will be defined in order to comply with the highest HSE standards, including its footprint optimization, the National Content expectations, the economic and social context, as well as other specific objectives that should correspond to precise, measurable and attainable targets.
The Papua LNG project is committed to collaborating with the PNG communities and government officials to safely develop these resources in a manner that protects the environment, encourage additional foreign investment, and contributes to the long-term social and economic stability of the country.
A Project of the scale of Papua LNG could not be successful without the collaboration of its co-venturers.
Experience, ideas and resources are helping to build and operate a large-scale project and contribute to the growth and development of Papua New Guinea.
ExxonMobil holds 37.04% in Papua LNG Joint Venture
ExxonMobil affiliates has had a continuous presence in Papua New Guinea for over a century. ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs. The construction and subsequent operation of Papua LNG’s new electric liquefaction trains adjacent to existing PNG LNG Project liquefaction facilities will be delegated to ExxonMobil by TotalEnergies.
In addition to being responsible for the construction and operation of the US$19 billion PNG LNG Project (33.2 percent interest), ExxonMobil has interests in fuels marketing, oil production and exploration in PNG. ExxonMobil is the parent company of ExxonMobil PNG Limited (EMPNG), the operator of the PNG LNG Project, which successfully and safely delivered PNG’s first LNG project. PNG LNG, having the capacity to produce more than 8 million tons of LNG annually, commenced operations in 2014 and ships liquefied natural gas to customers in Asia.
Santos holds 22.83% interest in Papua LNG Joint Venture
Santos is an important Australian domestic gas supplier and LNG supplier in Asia. For 70 years, Santos has been working in partnership with local communities, providing jobs and business opportunities, safely developing natural gas resources and from there powering industries and households.
Today it is one of the largest producers of natural gas for the Australian domestic market. The company commenced oil and gas exploration and production in Papua New Guinea in the late 1980s.
JX Nippon holds 2.58% interest in Papua LNG Joint Venture
JX Nippon Oil & Gas Exploration, a 100 percent subsidiary of ENEOS Holdings, Inc., is exploring for, developing and producing oil and gas, with activities in Southeast Asia, the Gulf of Mexico, Middle East and PNG. ENEOS Corporation is Japan’s largest integrated oil company and is a major oil importer and distributor of petroleum products. JX Nippon Oil & Gas Exploration has been involved in the oil exploration and development projects at Kutubu and Moran as well as other oil fields in PNG since the early 1990s. JX Nippon Oil & Gas Exploration has a 4.7 percent interest in the PNG LNG Project.
Kumul Petroleum Holdings Limited (formerly NPCP Holdings Limited) is a company incorporated under the laws of Papua New Guinea with all issued shares beneficially owned by the Independent State of Papua New Guinea through Kumul Consolidated Holdings (KCH) (formerly, Independent Public Business Corporation of PNG).
Kumul Petroleum may exercise a back-in right of up to 20.5 percent participating equity interest in the Papua LNG project, at the time of grant of the Project's Petroleum Development License.
Mineral Resources Development Company Limited (MRDC) is a 100 percent State-owned company. It was incorporated in 1975 under the Companies Act to hold and manage State and Landowner equity interests in mining and petroleum development projects in PNG.
MRDC may exercise a back-in right of up to 2 percent interest in the Papua LNG project, at the time of grant of the Project’s Petroleum Development License.