Unlocking Papua New Guinea’s energy potential

One of Papua New Guinea’s flagship projects is the PNG LNG Project, a collaborative effort involving ExxonMobil, Santos, and Kumul Petroleum.

The PNG LNG (liquified natural gas) project was a key focus of the PNG Industrial and Mining Resources Exhibition and Conference (PNG Expo), held from July 3–4 in Port Moresby.

Since its beginning in April 2014, the PNG LNG project has continued to play a crucial role in Papua New Guinea’s energy sector and broader economic development.

It has not only transformed Papua New Guinea’s energy landscape but it has also contributed to its emergence as a key player in the global LNG market.

In fact, the project has already paid over $5 million to its home of Central Province since the start of LNG production.

In 2021 alone, the Province earned record revenues from the project, with almost $900,000 delivered to the Papua New Guinean Government.

ExxonMobil PNG managing director Peter Larden said the revenues and associated benefits from the PNG LNG Project provided the government the opportunity to promote sustainable, long term economic development.

“We are extremely proud of our performance in contributing to the PNG economy,” he said.

“We are pleased to see this increased revenue going to the area.”

The PNG LNG project started its development phase in 2008, with construction commencing in 2010 and first LNG production achieved in 2014.

It truly takes a village to deliver such a monumental project – hence the collaboration between three major key players: ExxonMobil, Santos, and Kumul Petroleum.

ExxonMobil and Santos have brought extensive technical expertise in LNG production, exploration, and project management, which were essential for successfully developing and operating the complex LNG facilities.

ExxonMobil’s global presence and market access, coupled with Santos’s experience in energy markets, has facilitated the sale and export of LNG to international markets.

Throughout the process, Kumul Petroleum represented the interests of the Papua New Guinean Government, ensuring that the project aligned with national development goals.

The PNG LNG project has involved extensive exploration activities to identify and quantify natural gas reserves. Subsequent development phases included the construction of production facilities and infrastructure.

The primary objective of the project is to produce LNG for export markets. In 2014, PNG LNG successfully commenced LNG production and export, contributing to Papua New Guinea’s revenue and economic growth.

The project has also strengthened Paupa New Guinea’s position in the global energy market through strategic partnerships with international stakeholders. It has facilitated trade relations and positioned the country as a reliable LNG supplier.

The PNG LNG project has had an unparalleled economic impact on Papua New Guinea. LNG exports have generated substantial revenue for the government, supporting infrastructure development, social programs, and economic diversification.

This article featured in the May edition of The Australian Pipeliner. 

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