According to the statement, the agreement enables the partners to enter the front-end engineering and design (FEED) phase of study that will lead to the final investment decision (FID) next year.
Patrick Pouyanné, Chairman and CEO of Total, said: “The finalisation of the gas agreement is a major milestone for Papua LNG project that confirms the commitment of all partners and the Government of Papua New Guinea to make the project a success for all stakeholders.
“We are very pleased with the progress of this competitive LNG project that benefits from the brownfield synergies with existing liquefaction facilities and the proximity to Asian markets. It will further strengthen our position in the Pacific basin and ensure our future LNG portfolio growth.”
Total claims that the project will consist of two 2.7 million tpy LNG trains, with an overall capacity of 5.4 million tpy, and will unlock more than 1 billion boe of natural gas resources. The company also claims that the gas production will be operated by Total and the LNG plant will be developed in synergy with the ExxonMobil-operated PNG LNG project through an expansion of the existing plant in Caution Bay.
Since the memorandum of understanding (MoU) was signed in November last year, pre-FEED engineering studies and the environmental baseline survey have been completed.
Total operates the Elk and Antelope onshore fields and is the largest shareholder of the PRL-15 permit with a 31.1% interest, alongside partners ExxonMobil (28.3%) and Oil Search (17.7%), post the State back-in right of 22.5%.
Read the article online at: https://www.lngindustry.com/liquefaction/09042019/total-and-papua-new-guinea-sign-gas-agreement-for-lng-project/