The delivery will support government plans to improve the capacity and reliability of the country’s power supply.
An ExxonMobil spokesperson said the company hasn’t ruled out the development of pipeline infrastructure associated with the gas development, but this will be announced when the final development concept has been completed.
The agreement is in addition to an existing gas commitment for Hides domestic power generation.
“This agreement enables a reliable long-term supply of natural gas to support Port Moresby’s urgent power generation needs,” said ExxonMobil PNG Managing Director Peter Graham.
Under a memorandum of understanding, a portion of the natural gas supply allocated for domestic use will enable ExxonMobil’s PNG LNG Project to provide up to 25 MW of electrical power, about 20 per cent of Port Moresby’s current generation capacity, for an interim period while the government addresses long-term power generation options.
The remainder of the gas supply will be used to fuel a state-owned gas-fired power generation unit, expected to be located near the LNG Plant outside of Port Moresby.
The agreement provided for the award of a petroleum development licence and associated pipeline licences for the P’nyang field in order to provide access to the long-term natural gas reserves needed for power generation, and to enable the expansion of the PNG LNG Project, which could include the development of an additional train.
Preparations for appraisal drilling are anticipated to commence in 2015, subject to progress of technical work, permitting and budgeting.
To find out more about the PNG LNG Project, visit the website here.