LEADING PNG oil and gas company Oil Search Ltd believes a proposed three LNG train expansion and development will be ready to enter FEED in the second half of this year.
Oil Search’s managing director, Peter Botten, told a company meeting today that the various partners in the PNG LNG and Papua LNG ventures had now agreed on the three train concept.
The be constructed in the PNG LNG plant site area, the three train development concept would feature one PNG LNG expansion train, two Papua LNG trains.
Two of the three 2.7 million tonnes per annum (MTPA) trains will be supported by gas reserves from the Papua LNG operated fields including Elk-Antelope, with the PNG LNG train backed by the P’nyang field – which has had a significant upgrade following this year’s drilling success there.
Mr Botten told shareholders the three train plan will benefit from a number of low cost opportunities and a simplified commercial and financial structure.
In preparation for entering the key Front End Engineering and Design (FEED) phase the Ventues have already commenced engagement with the PNG Government, which would be a partner in the projects.
- Some of the cost saving benefits obtained by utilising the PNG LNG plant site may include: Sharing of shipping channel and, if necessary, construction of spur instead of new jetty
- Reduction of additional tank storage requirements; and
- Sharing of utilities, power generation, metering, control.