Phase: Execution
Country: Papua New Guinea
Owner/Operator(s): Exxon Mobile Corp. Santos Ltd.
Categories: Onshore Production Facilities Onshore Field Development (Drilling)
Type: Gas Field
Updated: 17 May 2012

Project Description

The PNG LNG Project will develop the gas and condensate resources of the Hides, Angore and Juha fields and the associated gas resources in the currently operating oil fields of Kutubu, Agogo, Gobe and Moran in the Southern Highlands and Western Provinces of Papua New Guinea (PNG). The gas will be transported by pipeline to an LNG Plant with a capacity of 6.6 mtpa, 20 kilometres northwest of Port Moresby on the coast of the Gulf of Papua. The project is scheduled to produce it's first LNG cargo in 2014.

According to Santos website, early works construction has commenced and continues at the upstream and LNG plant locations and for supporting infrastructure (roads, wharfs, communication etc). The Design and procurement work for the major EPC contracts is in progress and Site preparation work has commenced at the LNG Plant location. Exxon recently stated the project is now 50% complete.

Engineering and Construction

The two-train LNG plant will have capacity of 6.3 million tonne of LNG per annum. The pre-FEED study was completed by the end of 2007. KBR in a joint venture with Worley parsons (Eos) was awarded the Front End Engineering Design (FEED) 2008. Following award of the FEED, Eos was contracted to provide engineering, training, in-country support services and integrated project team services for construction and project management.

Kentz Engineering and Construction Group was awarded a contract with Chicago Bridge and Iron (CB&I) and Clough to design and build the construction camp the project's Hides Gas Conditioning Plant.

Clough Limited through it's Joint venture with Curtain (CCJV) was awarded works associated with the PNG LNG Upstream Infrastructure contract.

Ownership and Operations

Exxon Mobil 33.2% (operator), Oil Search 29.0%, Santos Ltd. 13.5% with the rest split between Nippon Oil, a unit of JX Holdings Inc., and PNG government and landowner interests.

Project Location


PNG LNG Project News

PNG LNG On Track For First LNG Delivery In The Second Half Of 2014

SOURCE: Santos | 02 September 2013

Santos advises that Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation and operator of the PNG LNG project, has confirmed that the project is more than 90% complete and on track for first LNG delivery in the second half of 2014.

Wood Group PSN Awarded Papua New Guinea Contract

SOURCE: John Wood Group | 23 July 2013

Wood Group PSN (WGPSN) has been awarded a contract by Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation, to provide engineering, procurement,construction and maintenance services to support its Papua New Guinea (PNG)liquefied natural gas (LNG) operations.

Clough Curtain JV Awarded $75m Work Order For PNG LNG Project

SOURCE: Clough | 27 November 2012

Engineering and project services company Clough Limited (ASX:CLO) today announced that the Clough Curtain Joint Venture (CCJV) has received work orders worth approximately A$75 million associated with the PNG LNG Upstream Infrastructure contract.

PNG LNG Capacity Increased, First LNG On Track For 2014; Capital Cost Estimate Increased To US$19 Billion

SOURCE: Santos | 12 November 2012

Santos advises that Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation and operator of the PNG LNG Project, has just completed and provided to co-venturers a cost and schedule review for the Project.

Exxon LNG Venture In PNG Sets Expansion Target

SOURCE: Dow Jones Newswires | 21 February 2012

A US$15.7 billion energy venture in Papua New Guinea operated by ExxonMobil Corp. may know by the end of the year if it has enough gas for an expansion that could vastly improve its profitability, project partner Oil Search said Tuesday.

Oil Search Sees Oil, Gas Output Flat Through To PNG LNG Startup

SOURCE: Dow Jones Newswires | 10 November 2011

Oil Search Ltd. said Thursday it expects oil and gas output in 2012 to mirror the range of 6.2 million barrels to 6.7 million barrels of oil equivalent forecast for this year, as it moves toward finalizing an annual work program.

Exxon's US$15 Billion Papua New Guinea Gas Project Half Finished

SOURCE: Dow Jones Newswires | 26 October 2011

The ExxonMobil Corp.-led PNG LNG gas-export venture in Papua New Guinea is about half finished and remains within its US$15 billion budget, project partner Oil Search Ltd. said Wednesday.

Santos Revenue Jumps; Says Gladstone LNG On Track

SOURCE: Dow Jones Newswires | 20 October 2011

Australian energy company Santos Ltd.on Thursday reported a 27% jump in third-quarter revenue as it continues to benefit from a gas supply squeeze in mining-intensive Western Australia state.

Exxon Progresses PNG Expansion Plans - Oil Search

SOURCE: Dow Jones Newswires | 26 July 2011

Exploration drilling that could support an expansion of ExxonMobil Corp.'s US$15 billion gas export venture in Papua New Guinea will start before the end of the year, project partner Oil Search Ltd. said Tuesday.

Santos 2Q Production 11.9 Million BOE, Steady On Year

SOURCE: Dow Jones Newswires | 21 July 2011

Santos Ltd. said Thursday its oil and natural gas output in the second quarter was flat on year, while its US$16 billion gas-export joint venture in Queensland state remained on budget despite rising cost pressures in the industry.

Santos Expects Dividend For 2011 At A$0.30/Share

SOURCE: Dow Jones Newswires | 05 May 2011

Santos Ltd. said Thursday it expects to pay a reduced dividend for this calendar year of 30 Australian cents a share due to the high capital expenditure needed for its liquefied natural gas developments in Australia and Papua New Guinea.

Clough Curtain JV awarded $209m Work Order for PNG LNG Project

SOURCE: EPC Engineer Staff | 23 February 2011

Clough Limited, the engineering and construction company, announced today that it has recieved work orders worth AU$209m though it's Joint venture with Curtain (CCJV). The works are associated with the PNG LNG Upstream Infrastructure contract.

Santos Increases Hybrid Funding To EUR1 Billion

SOURCE: Dow Jones Newswires | 15 October 2010

Santos Ltd. said Friday that it has boosted funding raised through European hybrid markets by EUR350 million to EUR1 billion, potentially reducing the size of any share issue needed to fund its share of construction of two giant gas export projects.

Kentz awarded Papua New Guinea Contract

SOURCE: Kentz | 27 July 2010

Kentz Corporation Limited, the holding company of the Kentz Engineering and Construction Group, confirms that it has entered into a contract with Chicago Bridge and Iron (CB&I) and Clough to design and build the construction camp for the Papua New Guinea (PNG) LNG Project's Hides Gas Conditioning Plant.

Santos Sources A$2 Billion Of Debt To Help Fund LNG Growth

SOURCE: Dow Jones Newswires | 19 July 2010

Santos Ltd. (STO.AU) said Monday that it has secured a A$2 billion bank loan from nine lenders, increasing its capacity to fund its share of the construction of multibillion dollar liquefied natural gas plants in Queensland state and Papua New Guinea.

Worley Parsons Wins PNG LNG Project Services Contract

SOURCE: EPC Engineer Staff | 04 June 2009

WorleyParsons announced today that it's joint venture with Kellog Brown and Root (Eos joint venture) has been awarded an agreement by Esso Highlands Ltd to provide project services for the Papua New Guinea Liquid Natural Gas Project (PNG LNG). The agreement extends to the end of 2014.


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