Low-cost LNG drives InterOil

Business, Normal

The National, Friday December 18th, 2015


PAPUA New Guinea’s emergence as a low-cost liquefied natural gas producer is a key growth driver for InterOil, an executive says.

Vice-president (Exploration) Saxon Palmer said the company had seen growth over the years which had added to the commercial attractiveness of its businesses.

“We sold 40 per cent of PRL15, which contains the Elk-Antelope field, in our deal with Total of France last year. This field is now under appraisal and development for Papua New Guinea’s second major LNG project,” Palmer said.

“While this obviously is a key growth driver for InterOil’s business, the emergence of Papua New Guinea as one of the world’s low-cost LNG producers is another key growth driver.

“With two LNG facilities – one under way and one under development – PNG  may have sufficient infrastructure to monetise other gas found in the country, and this is an important point because some gas fields around the world remain stranded because they do not have infrastructure or market.”

Palmer, highlighting Inter-Oil’s discoveries during the year, said Bobcat, Triceratops and Raptor had potential.

“From a technical perspective, this could be enough gas to support two LNG trains,” he said.