Post Courier
THE $US19 billion (K44.77 billion) PNG LNG Project
is 90 per cent complete and is on target to deliver its first LNG cargo in the
second half of next year.
Esso Highlands Limited, a subsidiary of ExxonMobil and the operator of the project, said yesterday that over 19,000 including 7500 Papua New Guineans were currently working at the project site to ensure the deadlines are met. “With more than 19,000 people currently working across the project, including more than 7500 Papua New Guineans, we are making significant progress. Antonov cargo aircraft operations into Komo airfield were completed on 13 August 2013 and installation of equipment delivered from Komo to the Hides Gas Conditioning Plant is currently under way,” said Decie Autin, PNG LNG project executive.
“We have started the commissioning phase at the LNG plant in preparation for the first LNG production in 2014. This includes sending gas from Oil Search’s Kutubu Central Processing Facility to the LNG plant to provide power and enable testing and commissioning of key facilities and equipment. Drilling at Well pad B is complete, and the drilling rig is being moved to the next well pad to support further drilling activity.”
Despite concerns that there was a danger of the cost associated with the project blowing out, Ms Autin said it remained at $US19 billion (excluding Port Moresby administration facilities and shipping) and reflected “disciplined project management in a unique and challenging working environment”.
The announcement yesterday by the ExxonMobil subsidiary will now put the spotlight back on the O’Neill Government, as discussions continue behind-the-scenes between the core government agencies such as the Department of Treasury, the Bank of Papua New Guinea and the Office of the Prime Minister on the establishment of a sovereign wealth fund.
The BPNG has expressed confidence at various public forums over the last six months on the establishment of a SWF before the start of LNG exports, as it looks to offset the negative impact of a slowdown in the PNG economy due to the winding down of the PNG LNG Project’s construction phase.
The Government was expected to make a major announcement this month on the proposed Kumul Holdings Limited, a state-owned super company that would manage mining and petroleum assets, with the presentation to give some details on the SWF arrangements. The announcement was to coincide with the country’s 38th independence celebrations but it is understood that has now been called off.
The PNG LNG Project is PNG’s largest construction exercise and includes gas production and processing facilities in Hela and Western provinces and liquefaction and storage facilities outside Port Moresby and the Gulf of Papua with capacity of 6.9 million tons per year and over 700 kilometres of pipelines connecting the facilities.
Esso Highlands Limited, a subsidiary of ExxonMobil and the operator of the project, said yesterday that over 19,000 including 7500 Papua New Guineans were currently working at the project site to ensure the deadlines are met. “With more than 19,000 people currently working across the project, including more than 7500 Papua New Guineans, we are making significant progress. Antonov cargo aircraft operations into Komo airfield were completed on 13 August 2013 and installation of equipment delivered from Komo to the Hides Gas Conditioning Plant is currently under way,” said Decie Autin, PNG LNG project executive.
“We have started the commissioning phase at the LNG plant in preparation for the first LNG production in 2014. This includes sending gas from Oil Search’s Kutubu Central Processing Facility to the LNG plant to provide power and enable testing and commissioning of key facilities and equipment. Drilling at Well pad B is complete, and the drilling rig is being moved to the next well pad to support further drilling activity.”
Despite concerns that there was a danger of the cost associated with the project blowing out, Ms Autin said it remained at $US19 billion (excluding Port Moresby administration facilities and shipping) and reflected “disciplined project management in a unique and challenging working environment”.
The announcement yesterday by the ExxonMobil subsidiary will now put the spotlight back on the O’Neill Government, as discussions continue behind-the-scenes between the core government agencies such as the Department of Treasury, the Bank of Papua New Guinea and the Office of the Prime Minister on the establishment of a sovereign wealth fund.
The BPNG has expressed confidence at various public forums over the last six months on the establishment of a SWF before the start of LNG exports, as it looks to offset the negative impact of a slowdown in the PNG economy due to the winding down of the PNG LNG Project’s construction phase.
The Government was expected to make a major announcement this month on the proposed Kumul Holdings Limited, a state-owned super company that would manage mining and petroleum assets, with the presentation to give some details on the SWF arrangements. The announcement was to coincide with the country’s 38th independence celebrations but it is understood that has now been called off.
The PNG LNG Project is PNG’s largest construction exercise and includes gas production and processing facilities in Hela and Western provinces and liquefaction and storage facilities outside Port Moresby and the Gulf of Papua with capacity of 6.9 million tons per year and over 700 kilometres of pipelines connecting the facilities.
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