French oil and gas company Total and its partners ExxonMobil and Oil Search have signed an agreement with the government of Papua New Guinea defining the fiscal framework for the US$13bn Papua LNG project in Papua New Guinea. The agreement was delayed after an earthquake hit PNG in February 2018, which slowed negotiations over how much gas from Papua LNG would be reserved for the local market and how the government's share of costs would be managed. The agreement will enable the partners to enter the Front-End Engineering Design (FEED) phase of study including tendering for contractors that will lead to the Final Investment Decision in 2020.
The 5.4 Mt/year Papua LNG export project aims to develop 1 Gboe of gas resources, mainly from the Elk and Antelope gas fields in the Papua New Guinea Gulf province. It will consist of two trains of 2.7 Mt/year, that would be developed in synergy with the existing 6.9 Mt/year PNG LNG plant (two 3.45 Mt/year trains commissioned in 2014). The new trains could be commissioned as early as 2024 or 2025.
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