Project Profile

Value: US$19 billion
Location: Southern Highlands
Production guidance range: 28 – 30 mmboe
Current LNG produciton: 7.9 million tonnes per year
Storage Capacity Gas: 320,000m³  
Start-up Year: Q1 2014

Construction of a 6.6 million tonne per annum LNG facility, targeting first cargos in the 2013 to 2014 time frame. The integrated complex will consist of gas processing facilities, pipeline network, an LNG plant and associated infrastructure, a 2.3km trestle, liquefied petroleum gas recovery units, two 160,000 cubic metre storage tanks and a 50,000 barrel storage facility for gas condensate. The two train LNG plant will include liquefaction and treatment units, inlet processing facility, storage and loading systems. The Kutubu and Agogo processing units will treat the condensate that will be available as part of the process and transport it through the Kumul export terminal. Offshore pipeline options for the project includes a 400km 32-in or 34-in pipeline that would carry gas from the onshore Kopi valve and piping station to a planned LNG plant at Konebada, Port Moresby.

Future possible plans include increasing the number of LNG trains from the proposed two to five. Gas will be sourced from Hides, Angore and Juha Gas fields development. The Final Investment Decision was approved on 8 December 2009. The PNG LNG project will use major Engineering, Procurement and Construction (EPC) contractors to build the PNG LNG facilities and pipelines. The major EPC contracts are:

1. C1 and C2 Infrastructure contractors include an Early Works component and will build
infrastructure needed to provide logistics routes for the subsequent EPC contractors
2. EPC1 contractor will build the telecommunications systems
3. EPC2 contractor will build the offshore pipeline and pipeline landfalls
4. EPC3 contractor will build the LNG facility
5. EPC4 contractor will build the Hides Gas Conditioning Plant and Hides wellpads
6. EPC5 A contractor will build the onshore pipeline
7. EPC5 B contractor will build the Komo airfield (Hides Area)
8. Drilling contractor will drill the gas wells


Operators:

ExxonMobil: Operator

Santos

Oil Search

Kumul Petroleum

JX Nippon Oil & Gas Exploration

Mineral Resources Development Co. (MRDC)


Contractors:

Bechtel: Parallel pre-FEED contract

Bredero Shaw: Pipe coatings

Cape: Provision of supervision, pipefitting, rigging, crane operations, administration, general tools and equipment rental

CBI Clough JV: Package 4 EPC for Hides gas plant
CB&I
Clough Limited

CB&I: EPC for two 160,000 cbm storage tanks

Chiyoda JGC JV: EPC package 3 for LNG pant:
Chiyoda Corp
JGC (Japan Gasoline Corporation)

Clough Curtain Brothers JV: C1 package for upstream infrastructures EPC:
Clough Limited
Curtain Bros
Consolidated Contractors International Company (CCC)
McConnell Dowell

Daewoo Engineering & Construction: Two LNG plants

GE Oil & Gas: Gas turbines and compressors

GEA Heat Exchangers: Heat exchangers

Joint Venture for transportation package:
Agility GIL
Trans Wonderland Limited

Joint Venture for design and construction of LNG condensate offloading jetty and construction topsides for LNG: BAM Clough JV:
Clough Limited
Royal BAM Group N.V.

Joint Venture for parallel Pre-FEED:
JGC (Japan Gasoline Corporation)
KBR

Kentz Engineers & Constructors: Build construction camp for gas conditioning plant

Lowrie Constructions: Telecommunication facilities

McConnell Dowell CCC Group JV: EPC package 5 B for infrastructure support

Mitsui OSK Lines: Construct and charter LNG vessels

Practical Applications Inc: metal Precipitation System

Saipem: Package 2 for offshore pipeline EPC

Smit Lamnalco: Provider of terminal services. Also awarded the towage and marine support contract. Also performed the first berthing for the PNG LNG project.

Societe Generale: Financial advisors

Spiecapag Niugini Limited (subsidiary of ENTREPOSE Contracting): EPC package 5 A for onshore pipeline

Volga-Dnepr Airlines: Carrying over 6,000 tons of equipment

WGPSN: Provide brownfield engineering and procurement support

LogiCamms: Asset Performance services, with a range of services including engineering and Asset Performance services, particularly the delivery of Competency Training and Competency Assurance services.

Flow-Cal, Inc.: Contract to provide an advanced gas and liquids measurement solution using the  Flow-Cal’s measurement software solution to store and validate all gas and liquid values going into the PNG LNG facility with new custom reporting tools and functionality built into the FLOWCAL application to meet the PNG project requirements.


Sub Contractors:

Aggreko: Installation of a power package to support construction

Hudong-Zhonghua Shipbuilding Group: LNG carrier by Mitsui 

Kentz: Execute electrical and instrumentation, construction and commissioning completions for conditioning plant for CBI Clough joint venture

Mott MacDonald: FEED phase support from Chiyoda