Photo credit: Total (2019)
By 2027, the first gas from the Papua LNG Project is planned to be sold.
As a result, the government will receive an additional 7% free carry in equity from the project.
The pre-FEED phase of the Total E&P (PNG) Limited-led joint venture project in Caution Bay will be completed by the end of this year, followed by FEED in 2022, FID in 2023, and first gas in 2027.
According to Petroleum Minister Kerenga Kua, the government dispatched a delegation to Paris recently to meet with Patrick Pouyanne, Chairman and CEO of TOTAL ES, after completing the Fiscal Stability Agreement, which is a condition for completing the subsequent obligations under the main Gas Agreement.
According to the conventional gas project management timeline, the EPC callout will occur following the completion of FEED, which will take roughly four years, followed by construction and commissioning.
Kumul Petroleum Holdings Limited said the methodology for the Papua LNG project will be a milestone for a project of this size.
For some of the main Engineering Procurement Construction ticket items, particularly fabrications, more emphasis will be placed on National Content, establishing in-country competence, training, and capacity.
This will provide jobs and economic opportunities for Papua New Guineans that will be sustainable in the future. For Papua LNG, the order of magnitude cost estimate is US$13 billion in CAPEX and US$12 billion in OPEX.
Meanwhile, the regulator has yet to file an application for the awarding of a Petroleum Development Licence (PDL) over the Elk and Antelope finds, which only cover four of the nine blocks covered by PRL 15.
The Gas Agreement and the succeeding Fiscal Stability Agreement pledged a total of 10.3 tcf of foundation volume.
“Indeed, it is a very exciting era for PNG as the country fully commits to the second-largest LNG project thus bringing the total LNG production capacity up from 8.1 MTA to 13.5 MTA.
“Currently PNG is ranked out of 20 LNG Exporting Countries with Qatar at the top, having 77.8 MTA of LNG production.
“Once, Papua LNG comes online, PNG will displace Oman (10.3MTA), Algeria (12.2 MTA), Trinidad & Tobago (12.5 MTA) and move up closer to Indonesia (15.5 MTA). Australia sits in second place with LNG Production of 75.4 MTA.
“PNG still has the potential to displace Indonesia if P’nyang LNG Project (2.7 MTA) negotiations can be included sooner and be integrated with Papua LNG and PNG LNG,” Kua said.
Reference:
Post-Courier (21 May 2021). “First Sale from Papua LNG Expected In 2027”.
