Papua LNG benefitting from lessons of the past


OIL Search managing director Peter Botten says the Papua LNG is better positioned than the PNG LNG in terms of selling gas globaly.
He was responding to queries on how the marketplace was slightly more difficult than it was for PNG LNG sales.
“This time around we are so much better off than the first project,” he said at the Petroleum and Energy Summit at The Stanley Hotel and Suites, in Port Moresby, yesterday.
“The marketing may be slightly more difficult this time around and obviously equity marketing is a key part of the future of the next project But in reality, we have demonstrated that you can build a world-class project and that it can be operated efficiently and effectively.
“When we did the first project, it was all brand new in PNG and it was an act of faith.
“And many markets or marketers were coming off from the financial crisis and the joint venture was far weaker than compared to the joint venture now going into the second round.
“I think we are evolving.
“I think we are in pretty good shape and this will be another outstanding project, building on what we have already got – certainly in terms of reputation and also physically.”
Total E&P PNG Ltd managing director Philippe Blanchard said marketing would best be handled in collaboration with partners.
“We have to progress all in parallel and we are ready to start the negotiation of the gas agreement and at the same time the partnership will work to find the buyers that we need,” he said.
“Without committing the gas and selling the gas in advance, it will be very difficult to get the project financing up and running.
“To that end we have entered recently into a partnership with Kumul and we have already started that work.”