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    Resource Upgrade at Papua LNG Field

Summary

The P’nyang field is bigger than thought, and enough to justify expanding the liquefaction capacity at the ExxonMobil-operated plant.

by: Nathan Richardson

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NGW News Alert, Natural Gas & LNG News, Asia/Oceania, Corporate, Exploration & Production, Import/Export, Infrastructure, Liquefied Natural Gas (LNG), , News By Country, Papua New Guinea

Resource Upgrade at Papua LNG Field

The P’nyang gas field, which is upstream of the ExxonMobil-led Papua New Guinea LNG project, has seen substantial increases in gas resources following a recertification, Australia-listed Oil Search said April 12.

The 1C gross contingent gas resource has more than tripled to 3.51 trillion ft3, while 2C contingent gas resources have risen to 4.36 trillion ft3 from 3.51 trillion ft3, the company said.

Oil Search’s managing director Peter Botten said: “The significant increase in certified P’nyang 1C and 2C gas resources is an excellent result, with the NSAI [Netherland, Sewell & Associates] certified volumes broadly in line with Oil Search’s internal estimates following the remapping of the field with reprocessed seismic data and the successful P’nyang South 2 ST1 well.”

He said that combined with resources in the Elk-Antelope fields, the company believes there are now about 11 trillion ft3 of certified gross undeveloped 2C gas resources available to support the proposed development of 8mn metric tons/yr of additional LNG capacity at the PNG LNG facility. “Importantly, there is in excess of 8 trillion ft³ of 1C resources, which will greatly assist marketing activities within each venture,” he said.

“Ongoing discussions are taking place between the PRL 3, PRL 15 and PNG LNG joint ventures, as well as the PNG government, on the preferred development concept for LNG expansion, which proposes one new train underpinned by gas from P’nyang and the PNG LNG Project fields and two trains dedicated to Papua LNG, supplied with gas from the Elk-Antelope fields,” he said.

PNG LNG is operated by ExxonMobil (33.2%), with Australian Santos (13.5%), National Petroleum Company of PNG (16.8%), JX Nippon Oil & Gas Exploration Company (4.7%), Mineral Resources Development (2.8%), and Oil Search (29%) holding interests in the project. The joint ventures are expecting to start the front-end engineering and design for expanding the plant in the second half of the year, Botten said.

Operations were suspended at PNG LNG February 26 by an earthquake in the PNG Highlands. A spokesperson for ExxonMobil said April 12 that it is on schedule to restart operations late April/early May. PNG LNG’s nameplate capacity is 6.9mn metric tons/yr but it can produce over 8.5mn metric tons/yr.