The Exxon Mobil Corp-led PNG LNG three way partnership on Tuesday introduced a last funding determination (FID) to proceed with a tie-in undertaking to unlock extra feed fuel for the liquefaction facility in Papua New Guinea.
Focused to be put onstream 2028, the Agogo Manufacturing Facility (APF) is designed to ship an incremental manufacturing of about 135 million cubic toes a day, PNG LNG co-owner Santos Ltd mentioned in a press launch.
“The APF Tie-In Challenge will ship fuel from the Santos-operated Agogo Manufacturing Facility to the PNG LNG fuel pipeline by way of a brand new 19-kilometer [11.81 miles] pipeline, along with two new wells and related manufacturing facility modifications”, Adelaide-based Santos mentioned.
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“Santos’ share of capital expenditure is roughly AUD 160 million (gross capex roughly AUD 400 million over three years)”.
Santos chief govt and managing director Kevin Gallagher mentioned, “The execution of this undertaking will convert Santos’ 66 mmboe [million barrels of oil equivalent] 2P [proven and probable] undeveloped reserves into developed reserves, delivering incremental web manufacturing of ~54 mmscf/d [million standard cubic feet per day] with important upside potential relying on reservoir efficiency”.
“With an anticipated IRR [internal rate of return] of higher than 50 p.c and a payback interval lower than 4 years from FID, and roughly two years from first fuel, the undertaking is predicted to be strongly value-accretive, help our long-term manufacturing profile and maintain feed fuel provide to PNG LNG”, Gallagher added.
Brett Darley, Santos chief working officer for Australia and Papua New Guinea, mentioned, “Our focus is now on progressing detailed design for the power modification, awarding the 2 major development contracts and progressing the short-term development camp to drive in the direction of first fuel within the second quarter of 2028”.
PNG LNG produced 2.13 million metric tons of liquefied pure fuel (LNG) gross and exported 28 cargos of LNG within the first quarter of 2026, in line with Santos’ quarterly report.
Put into service April 2014, the $19-billion PNG LNG contains fuel manufacturing and processing amenities that reach from the provinces of Hela, Southern Highlands, Western Province and Gulf Province to Port Moresby, together with a fuel conditioning plant on the Hides fuel subject and a two-train liquefaction and storage facility close to the capital. The amenities are linked by over 700 kilometers of onshore and offshore pipelines, in line with the homeowners.
Santos owns 39.9 p.c within the PNG LNG JV, operated by ExxonMobil. The opposite companions are ENEOS Holdings Inc and Papua New Guinea’s state-owned firms Kumul Petroleum Holdings Ltd and Mineral Sources Improvement Firm Ltd.
PNG LNG is completely different from the Papua LNG undertaking operated by TotalEnergies SE with Santos, ENEOS and ExxonMobil as companions. The 2 initiatives can be linked by way of midstream infrastructure, in line with Santos. The Papua LNG companions anticipate to make a FID by yearend.
“Rebid for the upstream engineering, procurement and development contracts has been accomplished and undertaking financing discussions are progressing”, Santos mentioned in its quarterly report April 23.
To contact the writer, e-mail jov.onsat@rigzone.com
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