Esso Highlands Limited (EHL), the operator of the PNG LNG Project, has announced that the capacity has increased by 5%, from 6.6 Mt/year to 6.9 Mt/year. The increase has been achieved through system-wide optimisations as well as some minor modifications.
Construction progress is on track at the Komo Airfield, where laying of the runway asphalt is under way, and the movement of materials via the Highlands Highway to Hides is exceeding plan. The project remains on track to achieve start-up in 2014.
The estimated cost has increased from $15.7bn to $19bn (excluding Port Moresby administration facilities and shipping). Foreign exchange is the largest single contributor of the increase and to a lesser extent, delays from work stoppages due to community disruptions and land access led to increased construction and drilling costs. Extraordinary logistics and weather challenges also increased costs. In particular, rainfall exceeded historic norms for most of the last two years.
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