ExxonMobil starts production at Papua New Guinea LNG project

ExxonMobil has started producing liquefied natural gas (LNG) from its $19bn plant in Papua New Guinea.

The first cargo from the project, which will also produce piped natural gas (PNG), is anticipated to be shipped to Asian markets soon.

The company said that production from the first LNG train will increase over the coming weeks, and work on the second train is progressing.

ExxonMobil affiliate ExxonMobil PNG will operate the project, which is anticipated to produce more than 9 trillion cubic feet of gas over 30 years of operations.

Other co-venturers in the project include Santos, Oil Search, National Petroleum Company of PNG, JX Nippon Oil & Gas Exploration, Mineral Resources Development Company and Petromin PNG Holdings.

The project features gas production and processing facilities in the Southern Highlands, Hela, Western, Gulf and Central provinces of Papua New Guinea.

Around 435 miles of pipeline link the facilities, which feature a gas conditioning plant and liquefaction and storage buildings with a capacity of 6.9 million tonnes of LNG a year.

ExxonMobil Development company president Neil Duffin said that project revenue and profitability are underpinned by long-term LNG sales contracts covering over 95% of the plant’s capacity.

"The project is optimally located to serve growing Asia markets where LNG demand is expected to rise by approximately 165% between 2010 and 2025, to 370 million tonnes per year," Duffin added.