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Papua New Guinea

ExxonMobil PNG Limited is operator of the PNG LNG joint venture which includes affiliates of Oil Search, Santos, Kumul Petroleum, JX Nippon and Mineral Resources Development Company (MRDC). 

PNG LNG is an integrated development that includes gas production and processing facilities in the Hela, Southern Highlands and Western Provinces of Papua New Guinea, liquefaction and storage facilities located northwest of Port Moresby and over 700 kilometers (450 miles) of pipelines connecting the facilities.

At a cost of US$19billion, the Project is the largest-ever investment in Papua New Guinea and is responsible for significant and widespread economic development of the country in recent years. It is expected that over nine trillion cubic feet of gas will be produced and sold over the life of the Project.

PNG LNG delivered its first cargo of LNG ahead of schedule in May 2014.

Operations are producing approximately 7.9 million tonnes of liquefied natural gas (LNG) each year.  PNG LNG is providing long-term supply of Liquefied Natural Gas to four major LNG customers in the Asia region: China Petroleum and Chemical Corporation (Sinopec), Osaka Gas Company Limited, JERA Company Inc., and CPC Corporation.

ExxonMobil is also a participant in PNG’s second LNG project, Papua LNG, following the acquisition of InterOil Corporation in February 2017.  Papua LNG is a joint venture which includes affiliates of Total SA (operator), ExxonMobil , and Oil Search.  The project seeks to commercialize gas associated with the Elk-Antelope fields located in Gulf Province.

ExxonMobil continues to explore for hydrocarbons in PNG across a world class portfolio of  acreage and is also working closely with the Government of PNG on development plans for gas discovered in the P’nyang field, Western Province.

ExxonMobil supports the PNG government’s plans to improve power generation capacity in the country, which will serve as a catalyst for business and economic growth.  Up to 25 megawatts of electricity a day is currently supplied to the grid in the capital of Port Moresby from gas-fired generators inside the PNG LNG Plant.  Discussion is with the government is ongoing in relation to development of an additional 50 megawatt gas fired power plant on a site near the LNG plant.

ExxonMobil has marketed petroleum fuels and other refined products in PNG since 1922, and today accounts for just over 35 percent of the market.

ExxonMobil is committed to improving safety and environmental performance throughout its PNG operations.  PNG is one of the least explored countries on earth, largely due to its rugged terrain and dense vegetation.  It is also a nation of rich biodiversity and distinctive cultures of people closely linked to the natural environment. This environment, as well as the complexity, scale and scope of the PNG LNG project, made it one of the most challenging projects ever constructed by our industry. ExxonMobil’s goal continues to be to conduct our business in a way that protects the country’s natural and social environments while providing economic benefits to its citizens.

Prior to construction a comprehensive environmental impact assessment was completed.  At 6,000 pages it is the most detailed and definitive environmental assessment ever done in Papua New Guinea. A biodiversity strategy is also in place that outlines how terrestrial biodiversity is managed as part of the PNG LNG project.

ExxonMobil’s community programs in PNG focus on education, health, agriculture and women’s empowerment.  We have supported the upgrade and refurbishment of schools in the Highlands, and delivered books and desks to schools throughout the project area.  Additionally, our support has extended to health programs, including a community health initiative in partnership with Texas Children’s Hospital and Baylor College of Medicine aimed at improving child and maternal health. In the area of women’s programs, the project provides training in baking and nutrition programs, which is providing economic opportunities for women. So far, 62 women from PNG have participated in the Global Women in Management program, and the country hosted the first-ever GWIM conference in PNG in March 2014 . The project has also supported the Business and Professional Women’s Club of Port Moresby, Buk Bilong Pikinini, the Port Moresby Nature Park, and the PNG Tribal Foundation.

Introduction

  • Andrew Barry, Managing Director, ExxonMobil PNG Limited

    The PNG LNG Project is unlocking value from stranded gas resources in the Highlands of Papua New Guinea. Over its 30-year life the Project is expected to have a transformational impact on the national economy, boosting GDP and export earnings, and returning value to Project partners, government and citizens of Papua New Guinea, and landowners in Project areas.

    Development of the Project has also stimulated further investment in the gas sector and with the successful delivery of the Project; PNG is seen as an attractive investment destination.
    But the PNG LNG Project is about more than developing the gas resources of Papua New Guinea – it’s also about developing people and capacity, and creating and delivering long-term benefits to local communities.

    Our focus is on building capacity. We do this through programs that train and employ people, and through development of local businesses. Additionally, by working with a variety of stakeholders and partners, we invest in programs that support the development of local communities.

    Over the years that we have constructed the Project, we have worked according to our values of safety, security, excellence, integrity, teamwork, and protection of the environment. These values form the foundation of our work and the decisions we make.

    I am proud of our contributions to Papua New Guinea, and here we share some of the key contributions we’ve made over the past few years towards building a prosperous future for Papua New Guinea.

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