LNG

Offtakers untroubled by PNG LNG outage

An earthquake in Papua New Guinea may have shut down the PNG LNG plant for eight weeks, but the impact on the market will be marginal An earthquake in Papua New Guinea may have shut down the PNG LNG plant for eight weeks, but the impact on the market will be marginal.
By Andrew Walker 6 March 2018 0 29880
The Gobe production facility for the PNG LNG plant. The Gobe production facility, which feeds PNG LNG. (Oil Search)

A powerful earthquake that struck Papua New Guinea last week has rendered the ExxonMobil-operated PNG LNG plant out of action until late April, but an otherwise well-supplied market means offtakers should not be badly affected.

LNG exports were halted following the earthquake, which registered 7.5 on the Richter scale and struck the Southern Highlands region on 26 February. Project stakeholder Santos released a statement on Monday saying it would take “approximately eight weeks” to complete repairs and restore production.

The sudden outage will tighten the...