By SHEILA LASIBORI
THE signing of a final sales deal with China Petroleum Co (CPC) of Taiwan is expected to take place within the first quarter this year, the owners of the PNG gas project said.
The deal involves an estimated 1.3 million tonnes per annum (mta) of still uncommitted liquefied petroleum gas (LNG) from a total of 6.6mta of LNG from the project.
Signatories to the deal are ExxonMobil’s subsidiary Esso Highlands Ltd and CPC.
It is understood that the CPC board is scheduled to meet later this month in which they would deliberate on the final sales and purchase agreement (SPA) with the gas project owners.
The PNG LNG project is an integrated development scheme that includes gas production and processing facilities, onshore and offshore pipelines and liquefaction facility with the capacity of 6.6 million tonnes of LNG per year.
Peter Graham, managing director for Esso Highlands, said on the occasion of the final investment decision (FID) the project was to go ahead pending completion of sales and purchase agreements with LNG buyers and finalisation of financing arrangements with lenders, expected to be concluded early this year.
According to Oil Search, the second major partner, the project has a common ownership structure across the value chain which will include, among others:
lAn upstream facilities comprising 12 well pads at Hides, Angore and Juha fields, production wells;
lGathering systems and processing plants at Hides and subsequently Juha in the Southern Highlands; and
lAssociated gas facilities at Kutubu, Moran and Gobe
LNG liquefaction plant, storage and loading facilities located at Portion 152, near Port Moresby; and
L Gas pipeline from the main upstream processing plant in Southern Highlands to the LNG plant at Portion 152.
Discovered gas resources committed to the project exceeds nine trillion cubic feet (tcf). About 80% of the gas supply will come from the Hides, Angore and Juha gas fields, with the main gas processing plant located at Hides.