TotalEnergies has launched Front End Engineering and Design (FEED) for the Papua New Guinea LNG project.

Following pre-FEED studies, Papua LNG partners have selected a concept including four electrical LNG trains (e-trains) with a total capacity of 4Mt/y.

These trains will be built within the existing liquefaction plant in Caution Bay, north west of Port Moresby. Papua LNG has also secured the use of 2Mt/y of additional liquefaction capacity in existing trains.

By selecting e-trains and re-injecting the native carbon dioxide (CO2) produced into the reservoirs, Papua LNG demonstrates its commitment to the reduction of the carbon intensity of the project.

The construction and operation of the electrical liquefaction trains will be delegated to ExxonMobil, operator of the PNG LNG project since 2014. TotalEnergies holds 40.1% interest in Papua LNG, with ExxonMobil 37.1% and Santos 22.8%.

In the framework of this integration between Papua LNG and PNG LNG, TotalEnergies also announced the signature of a head of agreement with JX Nippon in the view to sell a 2% interest (post Kumul back-in right) in Papua LNG. JX Nippon is an affiliate of ENEOS and already holds a 4.7% interest in PNG LNG.

The State of Papua New Guinea may exercise a back-in right of up to 22.5% interest at the Final Investment Decision planned by end 2023-early 2024. Production start-up is scheduled four years later.

Julien Pouget, Senior Vice President Asia Pacific for Exploration & Production and Renewables at TotalEnergies, said the integrated FEED entry is a significant step in the development of the Papua LNG project.

He said, “TotalEnergies and its partners are working closely with the Government, the communities, and the local economic network to ensure the Papua LNG Project serves as a landmark on the societal and environmental front for the LNG industry. This project, strongly supported by the Papua New Guinea State, will contribute to the security of LNG supply, especially for customers in Asia, where LNG can substitute coal for power generation and participate in a substantial reduction of CO2 emissions in the region.”

Honorable Kerenga Kua, Minister of Petroleum and Energy of Papua New Guinea, said the project is one of national significance and will stimulate business confidence and provide a significant impetus for its economy.

He said, “The Marape-Rosso government places high priority on the delivery of Papua LNG project, we have an improved deal for our people, and improved contribution of our national contractors and workforce.”

The development and monetisation of the gas resources involves the construction of a main pipeline to bring the gas from PRL 15 location in Gulf Province to the liquefaction plant at Caution Bay.

Papua New Guinea is planning to move to a production sharing regime for petroleum and gas by the middle of the decade, according to local reports.