By ANCILLA WRAKUALE

PAPUA New Guinea’s biggest gas project, PNG LNG Project has made significant progress in the first half of this year.

The project construction is now 90 per cent completed and is on track for first sales schedule for next year.

Oil Search, Limited, PNG’s largest oil and gas producer, who has 29 percent interest in the world scale gas project, operated by ExxonMobil said the operator Esso Highlands has made excellent progress on the project during the first half of this year.

“We are now at the 90% completion mark and soon expect to start delivering gas from the oil fields to the LNG Plant to support commissioning.

“At the LNG Plant site near Port Moresby, commissioning activities are underway on Train 1, the common process area, tanks, jetty and utilities and construction activities are continuing on Train2. On the onshore pipeline, land access is now complete along the entire pipeline route and, as atmid-2013, only 40 kilometres of mainline pipeline remained to be welded between Kutubu and Hides. Nitrogen purging of the offshore pipeline and onshore pipeline to Kutubu has taken place, in preparation for the introduction of commissioning gas from the oil fields.

The Hides Gas Conditioning Plant is progressing well, with the arrival of heavy equipment via the Komo airfield increasing the number of work fronts.

The drilling rigs are currently drilling ahead on the B and C pad wells and the construction of all Hides well pads is now completed”, OSL said.

OSL half year report said the project was on track for first deliveries in 2014 and costs incurred to date are consistent with theUS$19 billion capital cost outlook provided in November 2012.

“As highlighted in our second quarter activities report, the operator expects to finalise the US$1.5 billion supplemental project financing for the Project in the second half of 2013,” OSL said.

The company also said they await with interest the outcome of discussions between ExxonMobil and InterOil regarding the potential purchase by ExxonMobil of an interest in the Elk and Antelope fields in PRL 15.

“Depending on the terms of the ExxonMobil deal, these discussions may potentially provide Oil Search with the opportunity to participate in the development of a further LNG train in PNG.

“ExxonMobil has publicly indicated its interest in accessing the PNG LNG plant site, to take advantage of the land space and existing facilities there.”

Oil Search is Papua New Guinea’s biggest oil and gas producer and operates all of PNG’s currently producing oil and gas fields.

Oil Search has exploration activities in PNG and Middle East."

It sounds like Exxon is talking a lot with partners and the government about maximizing PNG LNG. There is a lot of land there and capacity. At one time I saw that there is room for up to 8 trains at that site. Will try and find that reference unless someone else has it.