TotalEnergies said it has launched the fully integrated front-end engineering and design (FEED) for the Papua LNG project.
As operator of Papua LNG, Total led its joint venture partners in the selection of a concept including four electrical LNG trains (e-trains) with a total capacity of 4 million tonnes per year (Mt/y). These trains will be built within the existing liquefaction plant of PNG LNG in Caution Bay.
Papua LNG has also secured the use of 2 Mt/y of additional liquefaction capacity in the existing trains of PNG LNG. Total said that by selecting e-trains and re-injecting the native CO2 produced into the reservoirs, Papua LNG demonstrates a commitment reductions in carbon intensity. The construction and operation of the electrical liquefaction trains will be delegated to ExxonMobil, operator of the PNG LNG project since 2014.
In the framework of the integration between Papua LNG and PNG LNG, TotalEnergies also announced the signature of a head of agreement with JX Nippon in view of selling a 2% interest in Papua LNG. JX Nippon is an affiliate of ENEOS and already holds a 4.7% interest in PNG LNG.
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TotalEnergies holds 40.1% interest in Papua LNG, along with its joint venture partners ExxonMobil (37.1%) and Santos (22.8%). The State of Papua New Guinea may exercise a back-in right of up to 22.5% interest at the final investment decision planned by end 2023-early 2024. Production start-up is scheduled four years later.
Julien Pouget, Senior Vice President Asia Pacific for Exploration & Production and Renewables at TotalEnergies, said: “The integrated FEED entry is a significant step in the development of the Papua LNG project. TotalEnergies and its partners are working closely with the Government, the communities, and the local economic network to ensure the Papua LNG Project serves as a landmark on the societal and environmental front for the LNG industry.”
Kerenga Kua, Minister of Petroleum and Energy of Papua New Guinea said “The Papua LNG Project is a project of national significance for Papua New Guinea and will stimulate business confidence and provide a significant impetus for our economy.”
