ExxonMobil signs P’nyang LNG project agreement

ExxonMobil and the Independent State of Papua New Guinea have signed the P’nyang project gas agreement for the proposed development of the P’nyang LNG project in the Western Province of Papua New Guinea (OGJ Online, Feb. 24, 2020). The project is within Petroleum Retention License 3 and covers 105,000 acres (425 sq km).

The P’nyang development is proposed to commence following the Papua LNG project in Gulf Province. It is expected to deliver LNG through construction of new upstream facilities in Western Province linked to existing infrastructure, including the PNG LNG plant near Port Moresby. The agreement provides the fiscal framework for the project and supports project scoping and evaluation.

Upon completion, up to 5% of P’nyang gas produced would also be made available to support the government’s electrification efforts in Western Province or another agreed location.

P’nyang field is estimated to hold 4.36 tcf of gas.

ExxonMobil subsidiary Esso PNG P’nyang Ltd is operator of P’nyang field. Esso PNG P’nyang, together with Ampolex (Papua New Guinea) Ltd., holds 49% interest in the license. Partners are Santos Ltd. (38.5%), and JX Nippon Oil & Energy Corp. (12.5%).