TotalEnergies has launched the Front-End Engineering and Design (FEED) for the 4 million tonne per annum Papua LNG project. As the operator of the project, TotalEnergies and its partners have agreed to use a concept that includes four LNG electric trains (e-trains).
The decision to use LNG electric trains, according to TotalEnergies, follows pre-FEED studies and allows project partners to maximize synergies and minimize costs. In addition, the four trains will be built within PNG’s existing LNG facility at Caution Bay.
Papua LNG has also secured the use of 2 Mt/y of additional liquefaction capacity on PNG LNG’s existing trains. The construction and operation of the electric liquefaction trains will be delegated to ExxonMobil, operator of the PNG LNG project since 2014, TotalEnergies has informed in its statement.
JX Nippon Eyes Papua LNG Interest
On the back of the integration framework between Papua LNG and PNG LNG, TotalEnergies has been able to bring JX Nippon into the framework. The two companies have signed a heads-up agreement, under which JX Nippon will acquire a 2 percent stake in Papua LNG. JX Nippon is a subsidiary of ENEOS and already has a 4.7% stake in PNG LNG, TotalEnergies said in the statement.
TotalEnergies has a 40.1% stake in Papua LNG, along with its joint venture partners ExxonMobil (37.1%) and Santos (22.8%). The company also recalled that the state of Papua New Guinea can exercise a right of return of up to 22.5 percent interest in the Final Investment Decision expected for late 2023-early 2024, with the start of scheduled production four years later.
“The Papua LNG project is a project of national importance to Papua New Guinea and will stimulate business confidence and provide a significant boost to our economy,” said Kerenga Kua, Papua New Guinea’s Minister of Petroleum and Energy.
“The Marape-Rosso government places a high priority on the delivery of the Papua LNG project, we have a better deal for our people and an improved contribution from our domestic contractors and workforce. The government strongly supports the project Papua LNG and encourages all stakeholders, including project partners, to work diligently to deliver a project “on time and on budget”, the minister said.
To contact the author, please email andreson.n.paul@gmail.com
