Papua LNG stake for Japan firm

JAPAN is Papua New Guinea’s biggest importer of liquefied natural gas (LNG) and this was further boosted recently with the decision by Japanese oil and gas exploration company, JX Nippon, to take up a 2.58 stake in the Papua LNG project from TotalEnergies.
The Japanese embassy in Port Moresby said this was a “huge step” for the company.
With the buy, JX Nippon will be participating in the Petroleum Retention Licence 15 area in Papua LNG project.
PRL15 contains the largest onshore ELK-Antelope fields in Gulf that forms the basis of the Papua LNG project.
In a statement, JX Nippon said the Papua LNG project would have liquefaction capacity of 5.6 million metric tonnes of LNG per year with first production expected by the end of 2027 to early 2028. JX Nippon anticipates the demand for liquefied natural gas as a transition was expected to remain strong globally.
Embassy economy councillor Isono Satoshi said with the full support of the PNG Government, activities relating to front-end engineering design, LNG marketing, and financing are progressing well.
“Papua LNG partners are targeting to achieve the final investment decision by the end of this year or early next year,” he said.
“Japan is PNG’s biggest importer of LNG and this agreement between JX Nippon and TotalEnergies is a sign of the potential the country has for international investors.
“This is a huge step for the firm and for Japan as we look to the future where PNG and Japan can continue working in collaboration, not only in the space of politics, but also in economy and trade.”
TotalEnergies currently has a 40.1 per cent operating stake in Papua LNG. If the 2.58 per cent stake to JX Nippon is cleared, it will have about 37.6 per cent, while others, ExxonMobil has 37.1 per cent, and Santos owns 22.8 per cent.
PNG is likely to buy a 22.5 per cent interest in the project.