PNG Gas
Encyclopedia
The PNG Gas is a project to develop the Hides gas field in the Southern Highlands of Papua New Guinea, and to construct a natural gas liquefaction
plant.
. The plan was to build a pipeline from Kutubu, through Gobe
and Kopi
to Bamaga and then south to Gladstone
in Queensland
, where it was to be connected with existing infrastructure. However, in January 2007 the connecting pipeline project was suspended, mostly due to a lack of foundation load customers, and the project partners started working on the LNG project. On 22 May 2008, the Government of Papua New Guinea and project consortium signed an agreement outlining fiscal and legal framework for the project.
Curtain
Joint Venture (CCJV) was awarded the contract for liquefaction plant and upstream infrastructure work in june 2009 and September 2010 respectively. In December 2009, EPC company Chiyoda JGC Joint Venture (CJJV) was awarded the contract for the process plant. Honeywell
was chosen to be the Main Instrumentation and Control Contractor (MICC), responsible for providing distributed control systems (DCS), safety, fire & gas and operator training simulation (OTS) systems.
, who will be also the operator of the plant and sell the project's output on behalf of the owners. ExxonMobil owns 41.6% of participating interest. Other partners of the project are Oil Search Limited
(34.1%), Santos Ltd.
(17.7%), AGL Energy
(3.6%), Nippon Oil
(1.8%) and MRDC (a PNG company representing landowner interests - 1.2%). Equities will change when the PNG State nominees join as equity participants at a later date. AGL Energy is considering divesting its stake in the project as its main interest was the gas pipeline to Australia, and not LNG.
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....
plant.
History
Originally it was planned to transport the gas to Australia via 4000 kilometres (2,485.5 mi) long offshore pipeline. A subsidy of Chevron, South Pacific Pipeline initiated the project in 1998 with an Environmental Impact StatementEnvironmental impact statement
An environmental impact statement , under United States environmental law, is a document required by the National Environmental Policy Act for certain actions "significantly affecting the quality of the human environment". An EIS is a tool for decision making...
. The plan was to build a pipeline from Kutubu, through Gobe
Gobe
Gobe may refer to:* Great Ordovician Biodiversification Event* Gobe Software...
and Kopi
Kopi
Kopi may refer to*The Indonesian and Malay word for coffee*Kopi Luwak, a specially processed coffee*Kopi tiam, a restaurant style typical of Southeast Asia*Kopi compiler, free-license Java compiler written in Java*An alternate name for Karaka...
to Bamaga and then south to Gladstone
Gladstone, Queensland
- Education :Gladstone has several primary schools, three high schools, and one university campus, Central Queensland University. It is also home to CQIT Gladstone Campus.- Recreation :...
in Queensland
Queensland
Queensland is a state of Australia, occupying the north-eastern section of the mainland continent. It is bordered by the Northern Territory, South Australia and New South Wales to the west, south-west and south respectively. To the east, Queensland is bordered by the Coral Sea and Pacific Ocean...
, where it was to be connected with existing infrastructure. However, in January 2007 the connecting pipeline project was suspended, mostly due to a lack of foundation load customers, and the project partners started working on the LNG project. On 22 May 2008, the Government of Papua New Guinea and project consortium signed an agreement outlining fiscal and legal framework for the project.
Technical description
The two-train LNG plant will have capacity of 6.3 million tonne of LNG per annum. In addition to the gas from the Hides field, potentially gas could be sourced also from the Juha and Angore fields. The pre-FEED study was completed by the end of 2007. The decision to proceed with the Front End Engineering Design (FEED) will be made at the end of March or early April 2008. The FEED most likely would be prepared by KBR. The final investment decisions should be made in 2009. The plant is expected to be commissioned by 2013 and it is expected to cost US$9.5 billion, of which the development of the Hides, Juha and Angore gas fields together with a pipeline to the coast may cost US$5 billion, while the LNG plant could cost US$4.5 billion.Contractors
Engineering, Construction and Procurement (EPC) company CloughClough
Clough is a village and townland in County Down, Northern Ireland. It sits about 3 miles from Dundrum on the A2 road between Newcastle and Belfast. It had a population of 255 people in the 2001 Census...
Curtain
Curtain
A curtain is a piece of cloth intended to block or obscure light, or drafts, or water in the case of a shower curtain. Curtains hung over a doorway are known as portières...
Joint Venture (CCJV) was awarded the contract for liquefaction plant and upstream infrastructure work in june 2009 and September 2010 respectively. In December 2009, EPC company Chiyoda JGC Joint Venture (CJJV) was awarded the contract for the process plant. Honeywell
Honeywell
Honeywell International, Inc. is a major conglomerate company that produces a variety of consumer products, engineering services, and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments....
was chosen to be the Main Instrumentation and Control Contractor (MICC), responsible for providing distributed control systems (DCS), safety, fire & gas and operator training simulation (OTS) systems.
Project company
The project is led by ExxonMobilExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
, who will be also the operator of the plant and sell the project's output on behalf of the owners. ExxonMobil owns 41.6% of participating interest. Other partners of the project are Oil Search Limited
Oil Search Limited
Oil Search Limited is the largest oil and gas exploration and development company incorporated in Papua New Guinea, which operates all of Papua New Guinea's oilfields. Founded in 1929, it is now one of Papua New Guinea's largest companies, and in 2006 was responsible for 13% of Papua New Guinea's...
(34.1%), Santos Ltd.
Santos Ltd.
Santos Ltd. is a large Australian oil and gas exploration company. Its name is an acronym for South Australia Northern Territory Oil Search.-Operations:...
(17.7%), AGL Energy
AGL Energy
AGL Energy is the largest Australian gas and electricity retailer, with over six million customers. It has large investments in the supply of gas and electricity, and has recently invested in sustainable energy businesses such as wind farms and a hydroelectric power station in Victoria’s High...
(3.6%), Nippon Oil
Nippon Oil
The , or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including fuels and lubricants; and other energy-related activities.Its products are sold under the brand...
(1.8%) and MRDC (a PNG company representing landowner interests - 1.2%). Equities will change when the PNG State nominees join as equity participants at a later date. AGL Energy is considering divesting its stake in the project as its main interest was the gas pipeline to Australia, and not LNG.