JGC Holdings Corp. has announced that its overseas EPC operating company, JGC Corp. (JGC), has been selected, together with Hyundai Engineering & Construction Co., Ltd (Hyundai E&C), as the EPC contractor for a major low carbon LNG plant as part of the Papua LNG project planned by TotalEnergies and its venture partners in Papua New Guinea.
Under this project, JGC and Hyundai E&C will form a joint venture (JGC-Hyundai JV) to construct an LNG production plant in Port Moresby, using natural gas feedstock from the Elk-Antelope gas fields in Papua New Guinea. With a planned production capacity of approximately 4 million tpy, the project represents one of the country's next major steps in expanding its LNG export capability.
The Papua LNG venture's selection of the JGC-Hyundai JV as EPC candidate reflects a comprehensive evaluation of the JV's track record in LNG plant construction, engineering capabilities, project execution planning, site safety management, bid price, and proposed schedule. The final EPC contract award and notice to proceed are expected to follow the project's final investment decision (FID), scheduled at some point in 2026.
JGC previously was awarded EPC work in 2009 for the PNG LNG project's liquefaction facilities. PNG LNG, operated by ExxonMobil PNG, is Papua New Guinea's first LNG project, having achieved first LNG production in 2014. Since its start up, the plant has consistently produced more than 8 million tpy of LNG , supporting the country's stable energy exports.
With the addition of the Papua LNG project, Papua New Guinea's total LNG production capacity is expected to exceed 10 million tpy. Furthermore, the LNG plant will adopt ‘E Drive’ technology, in which electric motors – rather than conventional gas turbines – drive the refrigerant compressors used in natural gas liquefaction. This feature will significantly reduce carbon dioxide emissions during plant operations, contributing to the development of a low carbon LNG facility.
Against the backdrop of the global energy transition and increasing momentum toward decarbonisation, LNG – among fossil energy sources – continues to play a vital role as a lower carbon fuel. The JGC Group has been involved in the construction of LNG plants representing more than 30% of global LNG production and is currently executing three major LNG projects: a large scale low carbon LNG project in the UAE, an offshore LNG project in Mozambique, and a near-shore LNG project in Malaysia.
The JGC Group will continue to actively pursue opportunities in the LNG sector as one of the world's leading engineering companies and contribute to the advancement of the global energy transition.