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Mid-year first delivery expected for PNG LNG project

LNG Industry,

ExxonMobil has said that that its joint venture PNG LNG project in Papua New Guinea is ahead of schedule, within its budget of US$ 19 billion and on target to export LNG to its customers – predominantly in Asia – by the middle of the year.

The project was initially due to begin exports in October 2014, but Decie Autin, ExxonMobil’s Project Executive, said the following: “Overall we’re more than 95% complete and we’re on track for first delivery of gas to our customers by mid-year […] ExxonMobil is delivering this project ahead of schedule and essentially on budget.”

Autin said that difficulties had been encountered in the project, such as the implementation of an onshore pipeline, completed in March. Although ExxonMobil CEO Rex Tillerson said in March that first delivery of LNG would be on 1 July, Autin did not confirm this. However, she expressed confidence that by mid-2014, the project would deliver first shipment.

The PNG LNG project, made up of ExxonMobil (33%), Oil Search Ltd (29%), Santos Ltd (13.5%), and the government of Papua New Guinea (17%) and Nippon Oil Corp (4.5%) will produce 6.9 million tpy at its liquefaction plant in Hides, which will be shipped to customers in Japan, Taiwan and China.


Edited from various sources by Ted Monroe

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