PNG Prime Minister James Marape and TotalEnergies chair and chief executive officer Patrick Pouyanné have provided a joint update on the status of the Papua LNG project.
Located in the Gulf Province, Papua LNG is a production project led by TotalEnergies in response to PNG’s desire to develop its gas resources.
TotalEnergies operates the project alongside its partners ExxonMobil, Santos, and JX Nippon.
During a recent meeting with Marape, Pouyanné reaffirmed TotalEnergies’ commitment to the project, and confirmed a high level of interest from LNG buyers for off-taking LNG from Papua LNG due to its strategic location close to key Asian markets.
Pouyanné also said the process of engaging engineering, procurement and construction contracts is ongoing and will require more work before a final investment decision is reached.
The project will now review the structure of some packages and open the competition to an enlarged panel of Asian contractors.
Pouyanné said this will push first production to 2025.
Marape and Pouyanné said the delay will not affect early works planned in PNG in 2024, and that the project will maintain its full support to the local population of the Gulf Province.
Pouyanné also announced that TotalEnergies intends to drill the first deepwater exploration well on the PPL 576 license in 2025.
Papua LNG will include nine production wells and a gas processing plant, a 320km pipeline, 260km of which will be offshore, as well as liquefaction units in Port Moresby.
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