Photo credit: CEO Magazine - Kumul Petroleum managing director Wapu Sonk
Commenting on the recent announcement by TotalEnergies that the Papua LNG joint venture will launch the first phase of front-end engineering and design (FEED) studies for upstream production facilities on the 5.4 Mt/year LNG project that they are operator of, Kumul Petroleum managing director Wapu Sonk was congratulatory.
He said, “As a potential co-venturer in this LNG project, we are really glad that this momentous decision has been made by TotalEnergies and its partners, it is a sign of their faith in the future of Papua New Guinea.”
Mr Sonk noted that studies for the downstream liquefaction facilities were also progressing in line with the overall project schedule, with the objective of launching the integrated FEED in the fourth quarter of 2022.
“The project is targeting a final investment decision (FID) around the end of 2023, which will enable project construction to commence, leading to a projected project start-up at the end of 2027. We have been waiting for this good news for a number of years now.”
As the national petroleum company, Kumul Petroleum Holdings will be exercising its right to take up to 22.5% equity in the Papua LNG project, and join the other partners TotalEnergies, ExxonMobil and Santos.
Mr Sonk continued, “We have seen the many benefits that have come about as a result of the ExxonMobil led PNG LNG Project, and I foresee that the lessons learned from that project will enable all Papua New Guinea stakeholders to maximise their various benefits from the Papua LNG development. Papua LNG construction will have large multiplier effects in the economy”
The decision by Papua LNG to enter FEED would benefit many stakeholders since after the completion of an estimated four years of construction it was planned to then start the construction of the P’nyang LNG Project, which would take another 3-4 years to construct.
“The likelihood of up to eight years of LNG related infrastructure construction means that many nationally owned service industries have the opportunity to develop a firm financial, technical and human resource foundation that will ensure their future in a rapidly industrialising Papua New Guinea.”
Mr Sonk confirmed his belief that LNG developments would underpin the economy of PNG for at least the next two decades, assisting in the roll out of electrification across the country and be the catalyst for downstream processing of petroleum into products such as fertilisers and petrochemicals.
“At Kumul Petroleum we will be playing a continuing role in petroleum developments and also intend to play a greater role in related nation-building projects to ensure that benefits from this sector are spread as widely as possible.”
