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Papua New Guinea gas project to supply LNG to BP

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LNG Industry,

As reported by Reuters, an ExxonMobil-operated gas project in Papua New Guinea has agreed a deal to supply LNG to a unit of BP, said Australia’s Oil Search Ltd, a partner in the development.

The agreement, starting this month, will provide BP with about 450 000 tpy of LNG over an initial three-year period, rising to about 900 000 tpy for the following two years, Oil Search said in a statement on Friday. It did not give any value for the deal.

“(The move) takes the total contracted volumes from the project to approximately 7.5 million tpy,” said Oil Search Managing Director, Peter Botten.

The agreement comes a month after Oil Search announced a similar deal with PetroChina Co Ltd.

The company also said that, on behalf of the project, ExxonMobil was in negotiations with several other parties over an additional 450 000 tpy of supply.

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