PNG LNG commences production ahead of schedule

Imfge credit: flickr User: Erwin Haria

Santos, a leading oil and gas producer, announced on Thursday that the PNG LNG project has started producing liquefied natural gas (LNG) ahead of schedule.

Imfge credit: flickr User: Erwin Haria
Imfge credit: flickr User: Erwin Haria

In a media release, the company also stated that production from the first LNG train will increase in the coming weeks and that the work on the second train is progressing as planned.

The first cargo from the first train is expected to be delivered to Asian markets before mid-year, whereas the second unit is expected to commence production within the next few weeks.

David Knox, Santos’ Managing Director, said that first LNG production from the PNG LNG project was a significant milestone, following first condensate production in late March.

“I congratulate our operator ExxonMobil on the successful delivery of this major milestone ahead of schedule. We look forward to the continued ramp up of LNG production until the first cargo is ready to be loaded in the coming weeks,” he said.

“Delivery of the PNG LNG project is a key step in Santos’ strategy to become a major LNG supplier to Asia. PNG LNG will quadruple Santos’ LNG production once the project reaches full output. Our GLNG project also continues to make good progress and remains on track for first LNG next year, within the current budget.”

The US$19 billion PNG LNG project, which was sanctioned in December 2009, includes the development of gas production and processing facilities in the Hela, Southern Highlands and Western Provinces of Papua New Guinea, over 700 kilometres of pipelines and a two-train LNG processing and loading facility with a capacity of 6.9 million tonnes per annum located near Port Moresby.

The company has 13.5% interest in the PNG LNG project, while the remaining percentage is held by affiliates of ExxonMobil (operator), Oil Search, National Petroleum Company of PNG, JX Nippon Oil & Gas Exploration, Mineral Resources Development Company and petroleum PNG holdings Limited.

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