TotalEnergies has reassured Papua New Guinea on its plans to launch Papua LNG project which is on target for Final Investment Decision (FID) in 2024 with first LNG in 2027-2028.
TotalEnergies has reassured Papua New Guinea on its plans to launch Papua LNG project which is on target for Final Investment Decision (FID) next year with first LNG in 2027-2028.
"[TotalEnergies’ CEO] Mr. Pouyanne assured me that the US$12 billion Papua LNG Project is on course to commence construction next year, following the FID, which will constitute a substantial boom to our economy," said PNG Prime Minister James Marape after meeting with the French company’s officials in France.
Marape expects that Papua LNG to improve his nation’s economy as he has remarked the “historical economic growth” generated by the country’s first LNG project (PNG LNG) which increased its GDP by more than 50% from 2008 to 2013.
“We anticipate a similar trajectory for Papua LNG starting from 2024 onwards."
According to the
Global LNG Database®, the planned Papua LNG project’s shareholders are TotalEnergies (operator) 40.1%, ExxonMobil (following the acquisition of InterOil in Feb. 2017) 37.1%, Santos Ltd (following the acquisition of Oil Search in Dec. 2021) 22.8%. PNG government may exercise a back-in right for up to a 22.5% interest at the FID date.
The project has already progressed on the upstream and downstream engineering works. Papua LNG joint venture launched an integrated Front End Engineering Design (FEED) for the project in March and JGC in partnership with Hyundai Engineering & Construction Co., Ltd. awarded the FEED and Engineering, Procurement and Construction (EPC) estimation contract for the project’s LNG facilities (downstream).
Papua LNG project’s first phase of the FEED studies for the upstream facilities was awarded in July 2022 to a consortium of Technip Energies (leader) and Clough.
Following pre-FEED studies, the Papua LNG partners have selected a concept using four electric LNG trains (e-trains) with a combined capacity of 4 MMT/Y to be developed within the existing ExxonMobil-operated PNG LNG project site. Papua LNG has also secured access to up to 2 MMT/Y of available liquefaction capacity from PNG LNG.
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