First LNG Cargo From Papua New Guinea Bound For Japan

July 2014, Vol. 241, No. 7

The first shipment of LNG from ExxonMobil PNG Limited’s US$19 billion PNG LNG project recently left Papua New Guinea carrying a cargo bound for Tokyo Electric Power Co. Inc. (TEPCO), in Japan. Production from the first train began in April and production from the second train has begun as more wells came online.

Project construction began in 2010 and took more than 191 million work hours to complete. At peak, more than 21,000 people were employed by the project, including more than 9,000 Papua New Guineans.

Flooding, minimal pre-existing infrastructure and extremely steep slopes were among obstacles that were overcome in constructing the project. Pipe had to be airlifted in some areas because the soil could not support heavy machinery and lack of infrastructure required construction of supplemental roads, communication lines and a new airfield.

ExxonMobil PNG Limited Managing Director Peter Graham said the project startup positions Papua New Guinea as a resource-rich nation well-placed to deliver natural gas to meet the growing demand of Asia over the long term.

“Revenue from the PNG LNG Project will support Papua New Guinea’s continued economic and social development,” he said. “The PNG LNG Project demonstrates to the world what Papua New Guinea is capable of delivering.”

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