Energy for the World. Opportunity for Papua New Guinea.

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ExxonMobil is the parent company of ExxonMobil PNG Limited, the operator of the PNG LNG Project, who successfully and safely delivered PNG’s first LNG project. 

In 2004, an affiliate of ExxonMobil began working on a concept to commercialise the natural gas in PNG’s Southern Highlands and transport this via a 3,000 kilometre pipeline to customers in Australia.

In 2007, it was decided that this project, the PNG Gas Project, was not feasible, and work started to evaluate an LNG project within PNG.

In 2008, the initial PNG LNG Project partners signed the joint operating agreement. In that same year, an independent Economic Impact Study was commissioned and showed that the Project would have a significant impact on the GDP of Papua New Guinea, in addition to other benefits such as employment and business opportunities.

On 22 May 2008, Project venture participants and the PNG State formally signed the Gas Agreement. The Gas Agreement established the fiscal regime and legal framework by which the PNG LNG Project is to be regulated throughout its lifetime and set the terms and mechanism for State equity participation in the Project. Following this, it was announced that the Project would enter Front End Engineering and Design (FEED).

Between December 2009 and March 2010, sales and marketing agreements for the gas were signed with four major customers.

The Environmental Impact Statement, which draws upon 26 supporting studies and took two years to complete, was approved by the PNG Government in October 2009. This documented the many rigorous commitments and measures the Project would take to manage the environment.

On 8 December 2009 the Project venture participants approved the Project, paving the way for construction to begin. This was supported by the completion of financing arrangements with lenders in March 2010.

Engineering, procurement and construction contracts were approved in late 2009 and in early 2010 construction work began.

In April 2014, the PNG LNG Project started production of liquefied natural gas ahead of schedule.

On 25 May 2014, the first shipment of liquefied natural gas from the PNG LNG Project was delivered by the Spirit of Hela to the Tokyo Electric Power Co. Inc. (TEPCO) in Japan.