LNG sale increasing

Business, Normal

The National, Tuesday November 17th, 2015

 OIL Search Limited says there is a  demand for spot volumes with more than 80 per cent of spot cargoes from Papua New Guinea worth $US19 billion (K55 billion) LNG (liquefied natural gas) project already sold to contract customers. 

Oil Search on its UBS, Australasian conference information stated that at the end of third quarter this year, more than 125 cargoes were delivered and nearly nine million tonnes produced since the start-up last year.  

In commercialising the country’s underdeveloped gas, the company stated that PNG LNG project had delivered a strong platform for growth with major infrastructure, Government and landowner support, Tier One LNG customers and financier confidence.

Oil Search said PNG could deliver at least two more LNG trains, “underpinned by existing undeveloped gas resources in Highlands and Gulf areas, and a third train with modest drilling success”.

“There is unprecedented opportunity to participate in PNG LNG expansion and Papuan LNG development in which both are world-class projects.”

Meanwhile, Oil Search says there is potential second world-scale LNG development in the country given that the Papua LNG project was to be operated by Total.  

Significant progress achieved so far included the locations of key infrastructure sites agreed by PRL 15 JV and supported by Government, commencement of financing process – financial, tax and legal advisors appointed, JV discussions on financing structure, and transfer of operatorship to Total SA from August 1, 2015.