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Project Insights

PNG LNG risks delay as government pushes better terms

The new government of Papua New Guinea is trying to negotiate better terms for the P’nyang development, which could cause delays to the PNG LNG expansion project The new government of Papua New Guinea is trying to negotiate better terms for the P’nyang development, which could cause delays to the PNG LNG expansion project.
By Damon Evans 10 October 2019 Asia Pacific / LNG 0 34661
Papua New Guinea's Hides gas plant, which feeds PNG LNG. (Oil Search)

The PNG LNG expansion risks being delayed by several years after the government of Papau New Guinea signalled it will take a tough approach towards negotiations with the ExxonMobil-led joint venture. 

Speaking at the LNG Producer-Consumer Conference in Tokyo in late September, PNG Petroleum Minister Kerenga Kua said he will push Exxon for better terms for the P’nyang development than those agreed by the previous government with Total for its planned 5.4 mtpa Papua LNG project. P’nyang will feed the 2.7 mtpa expansion of PNG LNG,...