ExxonMobil’s P’nyang deal bullish for PNG’s LNG export growth

ExxonMobil’s P’nyang deal bullish for PNG’s LNG export growth

A deal struck between ExxonMobil (NYSE:XOM) and the government of Papua New Guinea (PNG) earlier this year will ensure that the Pacific Island nation will remain a major force in the global market for liquefied natural gas (LNG) for years to come, according to a report by Fitch Solutions. Significantly, the government secured “highly favourable terms.”

As Energy Voice reported in February, the pair sealed a gas agreement that provides a clear framework for development of the P’nyang field to backfill existing LNG infrastructure. However, major development activities are unlikely to start before 2027.

“The breakthrough for P’nyang after years of delays is highly bullish for PNG, given its dependence on revenues generated from exporting its hydrocarbon resources,” noted Fitch Solutions.