PNG LNG Project Begins Production Ahead Of Schedule

The PNG LNG Project has started producing Liquefied Natural Gas ahead of schedule, using natural gas from the Hides fields in the Southern Highlands Province.

ExxonMobil Managing Director Peter Graham said production started after the project’s LNG Plant cooled the gas to a temperature of 160 degrees Celsius.


The project is forecasted to produce 19 billion dollars for the country; approximately 38 billion kina.


Mr. Graham said the PNG LNG team should be congratulated on achieving this major milestone ahead of schedule. He said completion of commissioning activities and the first LNG production ensures the project remains on target for its first LNG cargo before the middle of 2014.


Work on the second train is progressing and LNG production from this unit is expected to start in a few weeks’ time. The project did report some obstacles such as flooding, infrastructure and extremely steep slopes.


Startup of the PNG LNG Project is a phased approach with production ramping up in coming months.


Mr. Graham said ExxonMobil is looking forward to the benefits that the project will provide to Papua New Guinea and its citizens.


He said the 19 billion dollar project is expected to produce over 9 trillion cubic feet of gas in its lifetime.


It is an integrated development that includes gas production and processing facilities in the Southern Highlands, Hela, Western, Gulf and Central Provinces.


So far, more than 700 kilometers of pipeline connect the facilities which include a gas conditioning plant in Hides and liquefaction and storage facilities near Port Moresby with a capacity of 6.9 million tons per year.

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