Project Timeframe
Major projects like the PNG LNG Project take many years to design and develop.
An optimal concept design, preferred pipeline route and location for an LNG plant and vessel berth have been identified. The Project is currently undertaking front end engineering design and securing LNG sales and project financing. It is also consulting with the government and community on plans to address social and environmental impacts.
The preliminary schedule indicates a final investment decision in late 2009 with a target of first LNG cargo in 2013-2014.
Once fully constructed, the Project lifetime or production phase is expected to be around 30 years.
On 22 May 2008, the Project joint venture participants and the PNG State formally signed and executed a Gas Agreement. The Gas Agreement establishes the fiscal regime and legal framework by which the PNG LNG Project will be regulated throughout its lifetime. It also sets the terms and mechanism for State equity participation in the Project.
The Gas Agreement was signed on behalf of the State of PNG by the Minister for Petroleum and Energy, the Hon. William Duma MP and by the Project’s joint venture participants at a ceremony in Parliament House.
On 18 September 2008, the National Parliament passed, unopposed, bills to amend legislation as agreed under the terms of the Gas Agreement. The bills update the various Acts to reflect the terms of the Agreement.