16 Mar 2010

Exxon Mobil Corporation will proceed with LNG project in PNG

9:54 am on 16 March 2010

Exxon Mobil Corporation says it will proceed with a multi-billion dollar liquefied natural gas project in Papua New Guinea.

The company announced at the weekend that sales and purchase agreements with LNG buyers, and financing arrangements with lenders, have been completed.

The project will include gas production and processing facilities in the Southern Highlands and Western Provinces, and liquefaction and storage facilities, with a capacity of 6.6 million tonnes per year, near Port Moresby.

There will also be more than 700 kilometres of pipelines connecting the facilities.

ExxonMobil Development Company president Neil Duffin says the project would be developed in compliance with the highest standards for health and safety.

He says it would maximise the value of the resource and support the PNG government's moves to strengthen its economy and infrastructure base for the benefit of its people.

The initial investment in the project is estimated at 15 billion US dollars.

Over its 30-year life, the PNG project is expected to produce over nine trillion cubic feet of gas.

Construction will take about four years with first deliveries scheduled to begin in 2014.