PNG LNG Project to Ship More Than 90 Cargoes in 2015

PNG LNG project is expected to load more than 90 cargoes in 2015, Oil Search, a partner in the ExxonMobil led project said in its quarterly earnings report Thursday.

Since the project commenced liquids production in April and LNG production in May, 55 LNG cargoes have been lifted and 51 sold, Oil Search said.

Production net to Oil Search in the fourth quarter from the PNG LNG project was 5.49 mmboe (23.8 bcf LNG and 0.82 mmbbl liquids), while the base PNG oil and gas business contributed 1.75 mmboe.

Oil Search stressed that in light of lower oil prices the company is reviewing the outcomes of the recent ‘strategic review’ but “no changes to the core strategic direction are anticipated, with the company focusing on the delivery of PNG LNG expansion and development of the Elk/Antelope fields. Capital and operating expenditures, outside these priorities, are being assessed and final guidance on these metrics will be provided at the 2014 full year results announcement in February.”

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.

The project 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.