TotalEnergies launches integrated engineering studies for the Papua LNG project
Published by Jessica Casey,
TotalEnergies, operator of the project, has announced the launch of the fully integrated FEED for the Papua LNG project.
Following pre-FEED studies, in order to maximise synergies and minimise the costs, Papua LNG partners have selected a concept including four electrical LNG trains (e-trains) with a total capacity of 4 million tpy. These trains will be built within the existing liquefaction plant of PNG LNG in Caution Bay. Papua LNG has also secured the use of 2 million tpy of additional liquefaction capacity in the existing trains of PNG LNG. By selecting e-trains and re-injecting the native carbon dioxide produced into the reservoirs, Papua LNG demonstrates its commitment to the reduction of the carbon intensity of the project. The construction and operation of the electrical liquefaction trains will be delegated to ExxonMobil, operator of the PNG LNG project since 2014.
In the framework of this integration between Papua LNG and PNG LNG, TotalEnergies is pleased to also announce the signature of a head of agreement with JX Nippon in the view to sell a 2% interest (post Kumul back-in right) in Papua LNG. JX Nippon is an affiliate of ENEOS and already holds a 4.7% interest in PNG LNG.
TotalEnergies holds 40.1% interest in Papua LNG, along with its joint venture partners ExxonMobil (37.1%) and Santos (22.8%). The State of Papua New Guinea may exercise a back-in right of up to 22.5% interest at the final investment decision planned by end 2023-early 2024. Production start-up is scheduled four years later.
“The integrated FEED entry is a significant step in the development of the Papua LNG project. TotalEnergies and its partners are working closely with the government, the communities, and the local economic network to ensure the Papua LNG Project serves as a landmark on the societal and environmental front for the LNG industry,” said Julien Pouget, Senior Vice President Asia Pacific for Exploration & Production and Renewables at TotalEnergies. “This project, strongly supported by the Papua New Guinea State, will contribute to the security of LNG supply, especially for customers in Asia, where LNG can substitute coal for power generation and participate in a substantial reduction of carbon dioxide emissions in the region.”
“The Papua LNG Project is a project of national significance for Papua New Guinea and will stimulate business confidence and provide a significant impetus for our economy,” added Kerenga Kua, Minister of Petroleum and Energy of Papua New Guinea. “The Marape-Rosso government places high priority on the delivery of Papua LNG project, we have an improved deal for our people, and improved contribution of our national contractors and work force. The government strongly supports the Papua LNG project and encourages all stakeholders including project partners to work diligently to deliver an ‘on time-on budget’ project.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/08032023/totalenergies-launches-integrated-engineering-studies-for-the-papua-lng-project/
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