Santos Approves 19-km Gas Pipeline Tie-In Project in PNG

Santos and its PNG LNG partners approved a new 19-km gas pipeline tie-in project that will connect the Agogo production facility to existing LNG infrastructure in Papua New Guinea.

(Reuters) — Australian energy producer Santos said on May 12 it will proceed with the Agogo tie-in project in Papua New Guinea after approval from the PNG LNG joint venture, in which it holds a 39.9% stake.

Here are the details:

• The project will provide gas from Santos-operated Agogo production facility to the PNG LNG gas pipeline, with Santos' share of capital expenditure being nearly $160 million.
• A new 19-km pipeline will link the production facility to the existing PNG LNG gas pipeline, with first production of gas expected in the second quarter of 2028, the company said.
• The project, in partnership with ExxonMobil PNG, ENEOS Xplora, Kumul Petroleum and the Mineral Resources Development, has a production capacity of 135 million standard cubic feet per day, of which Santos' net share will be about 54 million standard cubic feet per day.
• The project will support major Santos' long-term production profile, with a roughly 12-year production plateau and potential to continue output beyond 2050, CEO and Managing Director Kevin Gallagher said.
• "Our focus is now on progressing detailed design for the facility modification, awarding the two main construction contracts and progressing the temporary construction camp to drive towards first gas in the second quarter of 2028," said Brett Darley, Santos Australia and PNG chief operating officer.