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Exxon Partner seeks PNG LNG expansion

LNG Industry,

Oil Search, the biggest partner in ExxonMobil Corp.’s Papua New Guinea (PNG) LNG project has said that it may build at least one more natural gas processing unit for the PNG LNG project, which is exporting LNG to Asian markets. The company expressed confidence that more gas will be found at the Hides field in PNG’s highlands, which would justify an extra LNG refrigeration unit.

The US$ 19 billion PNG LNG project commenced exports three months ahead of schedule in May this year. The project currently has two processing facilities that produce approximately 6.9 million tpa of LNG.

Peter Botten, Chief Executive of Oil Search, said: “By the end of the year I think we’ll have a pretty good idea as to the size and shape of the Hides field”. Although he declined to speculate on a possible fourth train, Botten did say that there would be enough resources to expand the project’s processing facilities.

At the end of last month, Oil Search announced that ExxonMobil was drilling nine development wells on the Hides field at the PNG site.

Expansion would help ExxonMobil counter three years declining production and bring enormous benefit to PNG’s economy.

Edited from various sources by Ted Monroe

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