24 Jul 2014

PNG company confident of LNG expansion

7:27 pm on 24 July 2014

The head of Papua New Guinea-based oil and gas company Oil Search says it is confident that enough new gas will be discovered to allow an expansion of the LNG Project.

The US$19 billion project began exporting natural gas in May and is expected to underpin sustained growth for PNG's developing economy.

LNG Project facility, Central Province, Papua New Guinea.

LNG Project facility, Central Province, Papua New Guinea. Photo: RNZI / Johnny Blades

The Wall Street Journal reports that as a partner in the Exxon Mobil-led project, Oil Search says sufficient gas probably exists in PNG's highlands to warrant expanding processing facilities.

Oil Search chief executive Peter Botten says he thinks that by the end of the year, they will have a good idea as to the size and shape of the gas field in Hides in the Highlands province of Hela.

Mr Botten says he is optimistic rewards from the project would be distributed equitably among PNG's people.

He says the government has made the right moves in setting up sovereign-wealth funds and various mechanisms for benefits distribution.