Gas project on track

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AUSTRALIAN firm Twinza Oil expects the first liquids production from its offshore gas field in Gulf by 2022, according to managing director Huw Evans.
The Pasca A gas condensate field, the country’s first ever off-shore development, is 85 km from the shores of Gulf and within the Exclusive Economic Zone.
Evans told The National that the cost of the liquids phase of the project is around US$640 million (K2.12 billion), with most of it arising from development drilling and the construction of production facilities.
He said the Pasca A facilities would have third party access, enabling the commercialisation of other gas projects.
“All the facilities will be installed offshore in the Gulf of Papua using industry-proven offshore designs that have been successfully deployed in other offshore locations for many decades.”
Evans said Twinza was working with the Department of Petroleum and Petroleum Minister Kerenga Kua to conclude negotiations on the Gas Agreement which could lead to the award of the petroleum development licence (PDL) before the end of the year.

The map showing the offshore fields.

Last month, a ministerial determination was signed allowing Twinza to proceed with its investment.
Kua said the signing of the ministerial determination allowed the benefit-sharing process between the Gulf government and the Government to move ahead.
“What still remains is for us to work towards the granting of the PDL and the signing of the Pasca Gas Agreement over the next couple of months.”
Evans said looking beyond the initial production phase, “the full field development includes export of the gas using floating LNG”.
This scope would involve addition of a short flow line to a liquefaction barge moored close to the production facilities.
Initially, the barge would have capacity to produce around 0.7 million tons per annum of LNG at an additional cost to the project of US$790 million (K2.62 billion).
“The commencement of the front-end engineering and design or FEED stage will be after the conclusion of approvals with the Government on the project’s gas agreement and development licence,” he said.
“The project will be producing condensate, LPG and natural gas.
“Production will average approximately 19,000 barrels per day of which 55 per cent is condensate and 45 per cent is LPG (liquefied petroleum gas).
“A good portion of the products will be going to the international markets in the Asia-Pacific.
“We are yet to finalise discussions with the State.
“But a portion of the LPG production is being considered for the PNG domestic market.”