Country needs downstream processing of LNG

 FOR the last couple of weeks oil & gas owners and PNG as a whole have been raising concerns about PNG LNG and the channeling of benefits. 

I wish to discuss some facts about LNG and the possibility of developing our own extracted oil and gas into end products here in PNG. To start with, we need to know the composition of liquefied natural gas. 

So, for our LNG discovered in our geographical locations we believe the hydrocarbon compositions to be ranging from mostly methane (LNG), ethane, propane, and butane through to higher molecular hydrocarbons such as decane and others. 

The LNG composition should also have water, nitrogen, carbon dioxide, hydrogen sulphide and mercury which should be removed in the processing plant. 

Next, once LNG is processed, the target LNG which is normally 86-90% methane is processed to 100% and shipped via cryogenic ships. 

And the rest of the by-product hydrocarbons in the order of increasing carbon are fractionated and stored as natural gas liquefied condensates. 

Is the government representing the landowners and PNG have a policy on this condensates? 

The second lightest gas is ethane produced as a by-product in the above process. 

Ethane can be converted into ethylene in six simple processes and this can be done in PNG by attracting the best possible financial investors together in partnership with landowners and the government.

 PNG will have developed its own oil and gas into finish products by integrating an ethylene plant with PNGLNG processing plant. 

And the ethylene plant can be branched or integrated to polyethylene plants to produce end products. 

Finally, PNG will have developed petrochemical industries in the country and many will have benefited through spin off business activities.

The concerns by the Hela and Gulf people about LNG condensates and downstream processing are very true and long overdue. 

This project is an export driven concept to generate huge revenues for our country.

Chemical Engineer, Via email