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ExxonMobil ships first LNG cargo from $19B PNG LNG project ahead of schedule; serving China and Japan

26 May 2014

ExxonMobil Corporation has shipped the first cargo of liquefied natural gas (LNG) from the $19-billion PNG LNG project ahead of schedule. PNG LNG, operated by ExxonMobil affiliate ExxonMobil PNG Limited, is expected to produce more than 9 trillion cubic feet of gas over its estimated 30 years of operations. The first cargo is bound for LNG customer Tokyo Electric Power Co. Inc. (TEPCO) in Japan.

The four major customers for the project’s output are China Petroleum and Chemical Corp. (Sinopec); Tokyo Electric Power Co. Inc. (TEPCO); Osaka Gas Co. Ltd.; and CPC Corp. Taiwan.

Production from the first train started in April and production from the second train has also started as additional wells came online.

Construction of PNG LNG in Papua New Guinea began in 2010, and took more than 190 million work hours to complete. At its peak, the project employed more than 21,000 people.

Flooding, minimal pre-existing infrastructure and extremely steep slopes were among obstacles that were overcome in constructing the project. Pipe had to be airlifted in some areas because the soil could not support heavy machinery and lack of infrastructure required construction of supplemental roads, communication lines and a new airfield.

The PNG LNG project is an integrated development that includes gas production and processing facilities in the Southern Highlands, Hela, Western, Gulf and Central provinces of Papua New Guinea. Approximately 435 miles (700 km) of pipeline connect the facilities, which include a gas conditioning plant and liquefaction and storage facilities with capacity of 6.9 million tonnes of LNG per year.

In addition to ExxonMobil PNG Limited, co-venturers are Oil Search Limited, National Petroleum Company of PNG, Santos Ltd., JX Nippon Oil & Gas Exploration Corp., Mineral Resources Development Company (representing landowners) and Petromin PNG Holdings Limited.

ExxonMobil continues to assess and advance new expansion and development opportunities in Papua New Guinea.

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