PNG LNG Green Lights Investment for Angore Development
Gas production from the new field will be used to backfill the joint venture’s LNG plant at Caution Bay.
ExxonMobil and its partners in the PNG LNG joint venture have taken the final investment decision on the Angore development project. Work on the gas development kicked off in July, according to partner Santos, which holds a 11.5% stake in PNG LNG. The produced gas from the field will be used to help backfill and maintain plateau production at the 6.9 mtpa LNG export plant in Caution Bay.
“This development represents the next tranche of gas backfill to maintain plateau production. Santos’ share of capital expenditure is approximately $135 million with first gas expected in 2024,” reported Santos.
The Angore field lies to the east of PNG LNG’s Hides facilities. In order to produce the gas from the field, the venture will build a new 11-km pipeline and install production equipment at the Angore Wellpad A. The field is made up of a similar high-pressure reservoir to the Hides field.
The total price tag for the development project works out to around $1 billion.
The LNG plant gets gas from seven fields, including the Hides, Angore, and Juha gas fields owned by PNG LNG.
Discussions are ongoing between PNG LNG and the TotalEnergies-led Papua LNG joint ventures in relation to the potential sharing of infrastructure and construction, as well as operation of the proposed Papua LNG facility at the PNG LNG site, added Santos.
If Santos’ proposed merger with Oil Search announced in September is finalized, Santos will own a 42.5% share of the PNG LNG project. That will be almost 10% more than operator ExxonMobil’s 33.2% holding. The merged company may sell down its interest.
PNG LNG delivered 29 LNG cargoes to customers during the third quarter, same as in the comparable quarter last year and two more compared to the prior quarter.