Oil Search Expects to Double PNG LNG Production in 5-7 Years

Oil Search said last week that it could double LNG production in Papua New Guinea (PNG) in next five to seven years.

The company maintained its 2015 production guidance of 26-28 million barrels of oil or equivalent (mmboe)

In an investor presentation the company said PNG can deliver at least two more LNG trains underpinned by existing undeveloped resources in NW Highlands and Gulf areas and third train with modest drilling success.

Recently, the Exxon operated project shipped its 100th cargo, bound for Japan for Tokyo Electric Power Company Inc. (Tepco), the same customer who received the first cargo in May 2014. 

Oil Search further said in its presentation that focus of 2015 PNG exploration and evaluation programme is to mature material gas prospects for drilling in 2015-16, to support PNG LNG expansion or additional trains.

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. More than 700 kilometres of pipeline connect the facilities, which include a gas conditioning plant in Hides, and liquefaction and storage facilities near Port Moresby with project capacity of 6.9 million tonnes of LNG per year.

The project is expected to produce more than 9 trillion cubic feet of gas over the estimated 30 years of operations. It will provide a long-term supply of LNG to four major customers in the Asia region including China Petroleum and Chemical Corp. (Sinopec), Tokyo Electric Power Co. Inc. (TEPCO), Osaka Gas Co. Ltd., and CPC Corp. Taiwan.