Papua LNG project advances with signed agreement
THE proposed Total-operated Papua LNG project in the eastern highlands of Papua New Guinea has advanced step with the signing of a Fiscal Stability Agreement between the joint venture participants and the government of Papua New Guinea.
The proposed Total-operated Papua LNG project in the eastern highlands of Papua New Guinea has advanced step with the signing of a Fiscal Stability Agreement (FSA) between the joint venture participants and the government of Papua New Guinea.
Oil Search Ltd. said the FSA is the final step envisioned under the Papua LNG gas agreement (signed in April 2019) to guarantee Papua LNG fiscal stability. It follows amendments to acts passed by the PNG parliament in November 2020.
PNG Prime Minister James Marape said the FSA gives full effect to the Papua LNG gas agreement and the project will go ahead as a two-train development independent of the proposed P’nyang one-train project.
Marape said the FSA enables a focused development of Elk-Antelope gas fields in retention license PRL 15 which lies near the Purari River and about 360 km northwest Port Moresby.
The two-train facility will be built within the boundaries of the existing PNG LNG project operated by ExxonMobil at Caution Bay, enabling incorporation of some technical synergies into the design and a reduction in the environmental footprint.
Marape said he expects Total to conduct negotiations about redesign of the facility for a two-train development (not three-train as would have been the case with the addition of P’nyang) as well as commercial and other matters.
Once negotiations are complete, Papua LNG can advance to front-end engineering and design stage and an application can be made for a development license.
Papua LNG participants are Total, ExxonMobil, and Oil Search.
— Authored by Rick Wilkinson