Total set for LNG project

FRENCH firm Total SA has been given the nod to proceed with the implementation of the US$13 billion (K43 billion) Papua LNG project.
This was after nearly three weeks of discussion to revise the gas agreement for the project that Total signed with the previous government in April.
Petroleum Minister Kerenga Kua yesterday said the Government would honour the gas deal and promises have been made by the project operator to consider some benefits for the country.
Kua told a media conference in Port Moresby yesterday that the French firm had made four concessions in a letter.
“Total is ready to progress immediately in preparing a detailed national content plan with the Department of Petroleum and Energy,” he said.
“Total will build third party access points and if requested by a third party, the participants have agreed to engage in negotiations to enable access by such third party to the pipelines on mutually acceptable terms.
“Total has agreed that after all loans to the Papua LNG project and Kumul carry and past costs have been reimbursed, if the State wishes at that time to acquire a participating interest in the pipelines, the participants will engage to negotiate in good faith such an acquisition by the State and the conditions under which it could be envisaged.
“Total and Kumul have formed a commercial joint venture for the purpose of marketing their shares together.”
The Government has now cleared Total to proceed full steam ahead with the implementation of the Papua Gas Project,” Kua said.
“The NEC-sanctioned review is now completed.”
Kua noted that the review exercise had demonstrated that the current concession-based licensing system had failed Papua New Guinea in both the mining and petroleum industries.
Total SA when signing the deal in April had said the construction of the Papua LNG project would begin in 2021 with plans for first cargo in late 2024.