China To Purchase LNG From ExxonMobil’s PNG Venture

ExxonMobil and its partners are planning to give their final push for the project, the largest investment in PNG, by the end of 2009 and begin production by 2013 or 2014.

The agreement, which requires support from the buyers’ government, is for the sale of two million metric tons of LNG annually to a major Asian customer, Oil Search said.

Discussions are progressing with targeted LNG consumers in the Asia region, Miles Shaw, public affairs manager for Exxon Mobil’s Esso Highlands PNG LNG unit, said. The project expects a final investment decision will be taken by late 2009 with a subsequent first LNG cargo targeted for late 2013/2014.

Oil Search owns a 34% stake in the project. Other venture partners for the project comprise of Santos Ltd, Nippon Oil Corporation, Petromin Resources Limited and traditional landowners.

Sign up for our weekly news round-up!

Give your business an edge with our leading industry insights.

Sign up