THE PNG liquefied natural gas (LNG) project has closed a deal with Japan’s Osaka Gas Co Ltd for the supply of about 1.5 million tonnes of LNG per annum.
This was announced by Esso Highlands Ltd, a subsidiary of Exxon Mobil Corp and operator of the PNG LNG project, yesterday.
The PNG LNG project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and liquefaction facility with the capacity of 6.6. million tonnes per year.
As of yesterday, about 5.3mta of LNG has been signed off with LNG buyers.
Apart from Osaka Gas (1.5mta), UNIPEC Asia Co, Ltd., a subsidiary of China Petroleum & Chemical Corp (Sinopec) signed off for about 2.0mta per year while about 1.8mta was to Tokyo Electric Power Co Inc (Tepco).
All the agreements are effective for a 20-year period.
The balance is now about 1.3mta that should be signed up with China Petroleum Co (CPC) of Taiwan next month.
“We are pleased to have entered into this important agreement with a leading LNG customer in Japan and to have started a new relationship with Osaka Gas,” Ron Billings, vice-president, LNG, ExxonMobil gas and power marketing, said.
“The PNG LNG project will provide a clean-burning supply of natural gas to help meet growing energy demand in Japan.”