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ExxonMobil signs power sale agreement with PNG Power

LNG Industry,

ExxonMobil PNG Ltd, operator of the Papua New Guinea LNG (PNG LNG) project, has signed an agreement for the sale of electricity to PNG Power.

PNG LNG will supply up to 25 MW of electricity to PNG Power, which will, in turn, build the necessary infrastructure for the LNG plant in order for supply to commence.

The agreement fulfills one of the key commitments made under a Memorandum of Understanding (MoU) signed by ExxonMobil and the government of Papua New Guinea in January 2015 to provide domestic gas for power generation for Port Moresby.

“With the signing of this agreement, we are continuing to demonstrate our commitment to the government and people of Papua New Guinea by contributing to the current power generation needs of Port Moresby,” explained Andrew Barry, ExxonMobil PNG Managing Director.

It is expected the work to connect supply from the LNG plant will be completed in time for the Pacific Games, subject to all parties fulfilling their commitments. In addition, the MoU provides for the supply of long-term gas sales to a new state-owned gas-fired power generation unit to be built near the LNG plant.

Adapted from press release by Katie Woodward

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