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|Oil Search to Begin Talks on New Papua New Guinean LNG Sales in 2019|
|= With Asian buyers =|
Oil Search, which joins LNG development projects in Papua New Guinea, will officially start negotiations on sales of LNG from proposed expansion projects in the country based on its share. The Company plans to talk with several potential buyers for the high calorific LNG favored by Asian buyers, aiming to reach SPA contracts.|
In Papua New Guinea, three LNG trains, an 8-mtpa capacity, are being developed -- one for the existing PNG-LNG project (operator: ExxonMobil), two for the new Papua LNG project (operator: Total).
Oil Search joins both projects and plans to transact LNG from the planned trains based on its share rates. It is setting its sights on the Asian market where demand is expected to grow drastically. Actually, it feels good and strong responses from buyers as they have strong interest in the new LNG.
The production start-up is planned in around 2023-2024, when supply/demand tightening is expected. The project participants intend to outline the expansion plans by the APEC Economic Leaders' Meeting to be held this November.
On the other hand, ExxonMobil's negotiation on additional LNG sales from the PNG-LNG is expected to reach an agreement. It has already signed a three-year 0.45-mtpa SPA contract with PetroChina, and a deal with BP to supply 0.45-0.90 mtpa of LNG over the course of 3-5 years. It is now aiming to sell 0.45 mtpa of LNG on a mid-term basis.
|last modified : Thu 01 Nov, 2018 [10:13]|