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ExxonMobil marketing mid-term LNG supplies from PNG LNG

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According to Reuters, Exxon Mobil Corp. is marketing 1.3 million tpy of mid-term LNG volumes from its US$19 billion Papua New Guinea LNG (PNG LNG) project.

Reuters reports that this reflects overproduction and an increase in gas reserves. The plant has two trains and an original nameplate capacity of 6.9 million tpy. In 2016, however, it produced 7.9 million tpy, meaning that there is excess production for sale.

Reuters also reports that this is possible because the operator of the PNG LNG joint venture (JV) – ExxonMobil PNG – stated in February that a study demonstrated the that the likely technically recoverable gas from all PNG LNG fields is 11.5 trillion ft3. This is an increase of a quarter from an earlier assessment of 9.2 trillion ft3.

The Vice President of PNG Marketing at ExxonMobil Asia Pacific Pte Ltd, Stephen McCusker, said: “Originally we contracted for the base project 6.6 million tpy, and last year we produced close to 7.9 million tpy, so the 1.3 million tpy plus the additional recertification gives us an opportunity to approach the market with the mid-term contracts.”

The project has four main long-term customers: JERA Co. (1.8 million tpy); Osaka Gas (1.5 million tpy); CPC (1.2 million tpy); and Sinopec (2 million tpy). The remainder is sold as spot and long-term supplies to these main four customers, as well as other companies.

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