PNG well positioned for future regional LNG demand

During the recent Kumul Petroleum Holding Limited’s organized Petroleum and Energy Conference, ExxonMobil Senior Vice President of Global LNG, Peter Clarke, shared his insights on the success of Papua New Guinea’s LNG industry.

Mr. Clarke said PNG is truly well-positioned “with proximity to market and high-quality resources, PNG can continue supporting regional demand for decades to come, with Asia Pacific countries set to be core natural gas customers, and in the process help these countries meet their energy security and emissions reduction goals,” Mr. Clarke said.

He said through the PNG LNG Projecthas demonstrated the ability to deliver reliable supply to

customers.

“When the first shipment of Papua New Guinea’s LNG set sail on the Spirit of Hela to Japan in 2014, and PNG entered an esteemed club of LNG exporting nations, no one could have foretold what the future would bring. But with the benefit of 10 years of hindsight.

“I can confidently say that through the strength of our partnerships, we have exceeded all expectations and together, we have firmly established Papua New Guinea’s global reputation for excellence in the LNG industry.

“In just its first decade of operations, the PNG LNG Project has generated tens of thousands of jobs and strengthened PNG’s economy. It has engaged 155 local businesses, including 10 LANCOs in the production phase, and invested K6.8 billion with these businesses.

“And along the way, we have helped to deliver more than K27 billion back to the State of Papua New Guinea and its people.”

Meanwhile, he added that ExxonMobil and its co-venture investments in the country continue today, with multiple works currently underway to bring new volumes online and further strengthen PNG LNG’s production levels.

“We are also pleased to announce that the P’nyang LNG co-ventures are currently progressing its concept evaluation phase. This phase is critical to ensure that the design to develop this proven 4.6 TCF resource is as capitally efficient as possible which is particularly important given P’nyang’s remote location,” he added.