Papua New Guinea LNG

escveritas
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Papua New Guinea LNG

Unread post by escveritas » Mon May 20, 2019 9:08 am

ExxonMobil PNG Limited is the operator of the US$19 billion PNG LNG Project, an integrated development that is commercialising the gas resources of Papua New Guinea. Our production operations include gas production and processing facilities, onshore and offshore pipelines and liquefaction facilities.

ExxonMobil operations commenced in the middle of 2014 to which they ship liquefied natural gas to customers in Asia. In 2017 the operations produced 8.3 million tonnes of LNG an increase of 20 percent from the original design specification of 6.9 million tonnes per annum (MTA).

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The US$19 billion PNG LNG project is an integrated development that includes gas production and processing facilities that extend from Hela, Southern Highlands, Western and Gulf provinces to Port Moresby in Central Province.

ExxonMobil PNG Limited operates PNG LNG on behalf of five co-venture partners.

Our facilities are connected by over 700 kilometres of onshore and offshore pipeline and include a gas conditioning plant in Hides and a liquefaction and storage facility near Port Moresby.

Liquefied Natural Gas (LNG) production began in April 2014, months ahead of schedule. Since then we have been reliably supplying LNG to four long-term major customers in the Asia region including:

China Petroleum and Chemical Corporation (Sinopec)
Osaka Gas Company Limited
The Tokyo Electric Power Company Inc.
CPC Corporation

In 2017 our operations produced 8.3 million tonnes of LNG an increase of 20 percent from the original design specification of 6.9 million tonnes per annum (MTA). Over the life of the project we estimate that the PNG LNG Project will produce more than 11 trillion cubic feet of LNG.

escveritas
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Re: Papua New Guinea LNG

Unread post by escveritas » Mon May 20, 2019 9:08 am

Co-venturers

ExxonMobil affiliates have been in Papua New Guinea since the 1920s. As well as being responsible for the construction and operation of the US$19 billion PNG LNG Project (33.2 percent interest) we have interests in fuels marketing, oil production and exploration. Learn more about our history in PNG

Oil Search Limited (OSL) is an oil and gas exploration and development company that has been operating in PNG since 1929. It is PNG’s largest oil and gas producer and operates all of PNG’s currently producing oil and gas fields. Oil Search Limited has a 29 percent interest in the PNG LNG Project.

Kumul Petroleum Holdings Limited (formerly NPCP Holdings Limited) is a company incorporated under the laws of Papua New Guinea with all of its issued shares beneficially owned by the Independent State of Papua New Guinea through Kumul Consolidated Holdings (KCH) (formerly, Independent Public Business Corporation of PNG) Kumul Petroleum Holdings Limited.

Kumul Petroleum Holdings Limited through its wholly owned subsidiary Kumul Petroleum (Kroton) Limited holds the State’s equity interest in the PNG LNG Project.

KCH was given the mandate by the National Executive Council in October 2008 to be the State’s nominee with respect to the State’s equity interest in the PNG LNG Project. KCH established Kroton No. 2 Ltd as a special purpose vehicle through which the State’s participation was effected. The Kroton No.2 Limited name was changed in November 2010 to National Petroleum Company of PNG (Kroton) Limited. In December 2014, all the issued shares in National Petroleum Company of PNG (Kroton) Limited were transferred to Kumul Petroleum Holdings Limited. In September 2015, the National Petroleum Company of PNG (Kroton) Limited name was changed to Kumul Petroleum (PNG LNG) Limited and subsequently changed in January 2016 to Kumul Petroleum (Kroton) Limited. Kumul Petroleum holds a 16.8 percent participating equity interest in the PNG LNG Project, making Kumul Petroleum the third largest participant in the Project.

Santos Limited has been an Australian energy pioneer since 1954 and is one of Australia’s leading gas producers, supplying Australian and Asian customers. Santos has also developed major oil and liquids businesses in Australia with interests and operations in every major Australian petroleum province, as well as in PNG and numerous other countries. Today it is one of the largest producers of natural gas for the Australian domestic market. The company commenced oil and gas exploration and production in Papua New Guinea in the late 1980s. Santos Limited has a 13.5 percent interest in the PNG LNG Project.

JX Nippon Oil & Gas Exploration, a 100 percent subsidiary of JX Holdings, Inc., is exploring for, developing and producing oil and gas, with activities in Canada, the Gulf of Mexico, North Africa, Australia, PNG and Southeast Asia. JX Nippon Oil & Energy, a 100 percent subsidiary of JX Holdings, Inc., is Japan’s largest integrated oil company and is a major oil importer and distributor of petroleum products. JX Nippon Oil & Gas Exploration has been involved in the oil exploration and development projects at Kutubu and Moran as well as other oil fields in PNG since the early 1990s. JX Nippon Oil & Gas Exploration has a 4.7 percent interest in the PNG LNG Project.

Mineral Resources Development Company Limited (MRDC) is a 100 percent State-owned company. It was incorporated in 1975 under the Companies Act and was initially appointed as State Nominee to acquire the State's and landowner equity interests in mining and petroleum projects. However, with changes in recent years, MRDC now concentrates entirely on landowner equity interests in both mining and petroleum projects. Projects in which MRDC-managed landowner entities hold an interest include the Kutubu, Gobe and Moran oil developments as well as the OK Tedi gold mine and the Ramu nickel joint venture. Petroleum Resources Kutubu Limited and Petroleum Resources Gobe Limited each hold direct interests in the Project and are both 100 percent owned subsidiaries of MRDC which holds these interests as a corporate trustee in trust for the Kutubu and Gobe landowners. MRDC Exploration has a 2.8 percent interest in the PNG LNG Project.

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Re: Papua New Guinea LNG

Unread post by escveritas » Mon May 20, 2019 9:11 am

PNG LNG is PNG’s first liquefied natural gas project and the largest development ever undertaken in the country. It was accomplished in one of the most remote and culturally diverse locations in the world.

Around 2,600 people are working on the Project, 82 percent are Papua New Guinean and it is through their efforts that PNG LNG has created an enviable reputation as being a dependable supplier of LNG to the world.

The production facilities are located across three separate provinces with two processing facilities connected via an impressive 700-kilometre-long pipeline network.

The Hides Gas Conditioning Plant (HGCP) is located just outside of the township of Hides in PNG’s Hela Province.

The plant processes up to 1 billion standard cubic feet of gas gathered from eight wells each day.

At the plant, gas, condensate and water are separated and treated before being sent via separate pipelines to other facilities in PNG for further handling.

The gas is transported along a 700-kilometre-long pipeline to the LNG Plant near Port Moresby where it is converted into liquid form, ready for shipping.

Around 30,000 barrels of condensate is also produced at the Plant daily. After separation, the condensate is directed along its own pipeline to the Kutubu Central Processing Facility and later the Kumul terminal for export.

These production demands are met by more than 450 production staff who work around the clock every day of the year.

In 2010, construction of this world class facility began, and despite many challenges it was completed months ahead of schedule in 2014.

The nearby Komo Airfield, the longest airstrip in PNG, was built to address some of the obstacles that hindered construction including poor highway infrastructure, rugged terrain and unstable and inconsistent soils. These factors made it dangerous and at times impossible to transport people and over-sized equipment into the site. A total of 88 Antonov aircraft loads landed at Komo during construction. The airfield is now used to transport workers to and from Port Moresby.

The LNG Plant is located 20 kilometres northwest of Port Moresby, at Caution Bay on the south coast of PNG’s Central Province.

The LNG Plant receives natural gas from the Hides Gas Conditioning Plant through a 700-kilometre pipeline.

The LNG process involves removing impurities and cooling the gas down to a temperature cold enough to turn it into liquid form. Once achieved, the LNG moves to specialised storage tanks. From there, the LNG goes through a pipeline connected to the jetty where it loads onto LNG carriers. These ships then export the LNG to the international market.

In 2017 our operations produced 8.3 million tonnes of LNG an increase of 20 percent from the original design specification of 6.9 million tonnes per annum (MTA).

Condensate, a low-density mixture of hydrocarbon liquids recovered through the gas liquefaction process, is also stored and loaded onto tankers for export at the LNG Plant.

Main LNG Plant facilities include:

Two LNG process trains
Two 160,000 cubic metre LNG storage tanks
Marine loading terminal for LNG tankers up to 215,000 cubic metres
Camp facilities, including accommodation and amenities, administration office, medical centre, emergency helipad and sport and recreation centre

The Pipeline
Conditioned gas is transported from the Hides Gas Conditioning Plant (HGCP) in the Highlands to the LNG Plant just outside of Port Moresby via a state-of-the-art 700-kilometre-long pipeline.

The pipeline includes an onshore and an offshore portion. The onshore section of pipe has a diameter between 32 and 34 inches and is buried one metre below ground. It travels a distance of 290 kilometres from the HGCP all the way down to the Omati River.

Pre-construction surveys were carried out and the route was selected on the basis of environmental and cultural criteria. This section was extremely challenging to construct and took over 30 million work-hours to construct and install.

The offshore section of pipe joins the onshore section at the Omati River and extends a further 407 kilometres to the LNG Plant. The offshore segment travels for approximately 24 kilometres past Goaribari Island to the open sea, then across the Gulf of Papua to the Caution Bay landfall at the LNG Plant.

This section of the pipeline route was engineered specifically to avoid marine fauna, coral reefs and existing oil export facilities, and to provide an optimal route for pipeline constructability and safe operations for the life of the pipeline.

It is made of carbon steel with an inside diameter of 36 inches, is weight coated with concrete and is comprised of more than 34,000 joints of pipe.

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Re: Papua New Guinea LNG

Unread post by escveritas » Mon May 20, 2019 9:13 am

Export and shipping

PNG LNG is exporting over 8 million tonnes of LNG each year to customers in Asia. This involves more than 100 cargos departing the marine facility annually.

To meet the commitment to the customers, PNG LNG maintain long-term charters on a fleet of four LNG carriers which include the Spirt of Hela, Gigira Laitebo, Papua and Kumul.

The carriers have a capacity ranging from 169,000 cubic metres to 175,000 cubic metres. Our marine facility is built to accommodate LNG carriers up to approximately 215,000 cubic metres.

The Papua and Kumul were custom-built in China to ship PNG LNG gas. The Papua began service in February 2015, while the Kumul loaded its first cargo in June 2016.

All carriers meet ExxonMobil and international safety and regulatory guidelines and are operated by Mitsui O.S.K Lines.

Domestic power

In addition to maximising the benefit associated with the production operations, PNG LNG is working with the Government of Papua New Guinea on the supply of domestic gas to improve the capacity and reliability of Papua New Guinea’s power network.

Approximately 20 percent of Port Moresby’s power demand is reliably supplied by PNG LNG gas. PNG LNG will also be providing gas to a new 58 megawatt power plant being built near Port Moresby, which will add a further 40 percent of capacity to Port Moresby.

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