ExxonMobil seals crucial deal for LNG backfill project in PNG

ExxonMobil seals crucial deal for LNG backfill project in PNG

ExxonMobil (NYSE:XOM), which operates the PNG LNG export complex in Papua New Guinea (PNG), has sealed a gas agreement with the PNG government that provides a clear framework for development of the P’nyang field to backfill existing liquefied natural gas (LNG) infrastructure. However, major development activities are unlikely to start before 2027.

“The signing of the gas agreement marks a major milestone for the project, setting out the fiscal framework and supporting project scoping and evaluation,” project partner Santos (ASX:STO) said in a statement today.

“Subject to a final investment decision (FID) by the P’nyang participants, the ExxonMobil-operated P’nyang project would deliver LNG through new upstream facilities in Western Province linked to existing infrastructure, including our world-class PNG LNG plant near Port Moresby,” added Santos.