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PNG LNG Project

PNG LNG Project overview

The PNG LNG Project is a 6.9 million tonne per annum (MTPA) integrated LNG project operated by ExxonMobil PNG Limited. The gas is sourced from seven fields: the Hides, Angore and Juha gas fields and from associated gas in the Oil Search operated Kutubu, Agogo, Moran and Gobe Main oil fields.

More than 9 tcf of gas and 200 million barrels of associated liquids are expected to be produced over the Project's 30+ year life. The gas is conditioned in the PNG Highlands and then transported by gas pipeline to the LNG plant, located approximately 20 kilometres north-west of Port Moresby. The gas is liquefied at the LNG plant prior to loading onto ocean-going tankers to be shipped to Asian gas markets. Meanwhile, condensate from the PNG LNG Project is combined with existing production from Oil Search’s PNG oil fields and exported as ‘Kutubu Blend’ from the Kumul Marine Terminal located offshore in Gulf Province.

The Project came onstream in the first half of 2014, ahead of schedule and within the revised US$19 billion budget. Condensate production and export commenced in March, followed by the start of LNG production in April 2014. The Project reached full nameplate operating capacity in July 2014, only three months after first production. In February 2015, the Project achieved financial completion, enabling co-venture cash flow distributions to commence. At plateau, Oil Search’s share of annual production is estimated to be approximately 20 - 21 mmboe.

The Project has transformed Oil Search into a significant LNG exporter, with a long-term and stable cash flow. In addition, it has demonstrated that the co-venture partners and PNG are capable of delivering a world-class LNG project in a developing country, which has created an excellent platform for future LNG developments in PNG.

With the achievement of stable operations, the focus has turned to production optimisation/debottlenecking. Oil Search believes debottlenecking offers the potential to add material incremental value to the Project.

Project participants

ExxonMobil PNG Limited 33.2% 
Oil Search 29.0%
National Petroleum Company of PNG (PNG Government 16.8%
Santos 13.5%
Nippon Oil 4.7%
MRDC (PNG landowners) 2.8%

Development plan overview

The initial phase of development comprised the following:

  • Drilling nine new wells at Hides (including Hides F1 Deep well drilled to Toro reservoir in early 2015) and two new wells at Angore.
  • Construction of an airstrip at Komo, near Hides, to facilitate delivery of heavy equipment required for the construction of the Hides Gas Conditioning Plant (HGCP) via Antonov, the world’s largest aircraft.
  • The construction of more than 700 kilometres of pipelines, connecting the producing fields in the Highlands of PNG to the LNG plant in Port Moresby.
  • Construction of the HGCP, located in the Highlands, to collect and separate gas and associated liquids from the Hides, Angore and Juha fields.
  • Modifications to the Associated Gas fields (Kutubu, Gobe Main, Moran and Angogo) to allow the production of pipeline specification gas, metering and tie-ins to the onshore gas pipeline and handling of the Project condensates.
  • Installation of a new commissioning gas skid at Kutubu for the initial filling of the LNG gas pipeline and commissioning of the LNG plant.
  • Upgrades to Oil Search’s existing liquids export system to extend its life and increase reliability.
  • Construction of two 3.45 MTPA LNG trains, two 160,000m3 LNG storage tanks and a 2.4 kilometre jetty at the LNG plant site. The 700 hectare LNG plant site is relatively flat, has a protected harbour and is in close proximity to the deep water required for LNG tankers.
  • The lease of four LNG ships from Mitsui O.S.K. Lines, Ltd. for the portion of LNG sales which are being sold on a delivered basis.


6.6 MTPA of the Project’s 6.9 MTPA nameplate capacity is contracted to Asian buyers, comprising:

  • Tokyo Electric Power Company (Japan): ~1.8 MTPA
  • Osaka Gas (Japan): ~1.5 MTPA
  • CPC Corporation (Taiwan): ~1.2 MTPA
  • Sinopec (China): ~2.0 MTPA

The LNG is jointly marketed, with ExxonMobil acting as marketing representative on behalf of the Project participants. Remaining volumes are sold on the spot market.

Competitive advantages

The PNG LNG Project is recognised in the market as one of the most economically robust LNG projects in the region. The Project’s competitive advantages include:

  • A conventional LNG Project using established technology
  • Substantial certified reserves base with high liquids content, enhancing economics.
  • Onshore location with an existing infrastructure base from the oil developments.
  • Proximity to growing Asian LNG markets.
  • Stable fiscal regime with strong Government support.
  • Aligned joint venture with an operator that is highly respected for its ability to deliver major projects, augmented by Oil Search’s more than 85 years of in-country experience.

PNG LNG Project quick facts



PNG LNG Environmental and Social Reports

ExxonMobil and its co-venturers recognise that PNG is one of the most beautiful and unique places on earth. It is a nation of distinctive cultures and people, closely linked to the incredible natural environment, endowed with many natural resources. The Project's goal is to operate PNG LNG in a way that protects these national blessings while helping to bring economic success to the country and contributing to the global community by supplying energy to help meet the world's growing demand.

Details on the Project’s construction, safety, security, health, environment and social management activities are contained in the PNG LNG Environmental and Social Reports.

Click here to access the PNG LNG Environmental and Social Reports

Click here to visit the PNG LNG website