The proposed LNG project will be developed by InterOil and its joint venture partners, including foundation partner Pacific LNG Operations. The Government of Papua New Guinea, through its nominee Petromin PNG Holdings, will have up to a 22.5% equity interest in the project.
The project targets a $7 billion two-train LNG facility, with each train capable of producing approximately 4 million tons of LNG per annum. While current plans call for first production of LNG towards the end of 2014 or beginning of 2015, InterOil is progressing a proposed liquids stripping plant, to be located in Gulf Province, in late 2011 or early 2012.
The approved project agreement, which is expected to be signed before the end of the year, establishes the terms for commercializing and monetising the Elk/Antelope natural gas resources. InterOil expects that natural gas produced will be treated at a conditioning plant in the Gulf Province and then transported to the proposed LNG plant site near the company’s existing refinery at Napa Napa.
InterOil anticipates that the LNG plant will be designed to operate as a tolling facility, and that the LNG will be jointly marketed by the upstream owners on behalf of the joint venture.
Phil Mulacek, CEO of InterOil, said: “This approval is another major milestone in advancing the monetization and commercialization of our resources we have established at the world class Elk/Antelope fields.
“The infrastructure envisioned to complete the LNG project firmly establishes incentive for further exploration in the country. With the support of Pacific LNG and Petromin, we expect to develop these resources and infrastructure in a manner with industry leading economics. We look forward to moving ahead with the LNG project and working with the people and governments of Papua New Guinea.”
