Papua liquefied natural gas (LNG) by TotalEnergies remains one of the most consequential gas projects under development in Asia-Pacific. Anchored on the Elk-Antelope gas fields and integrated with existing PNG LNG infrastructure, the over US$14bn development combines scale, lower-carbon design features and infrastructure that have made it a focal point for both international lenders and LNG buyers.
Latest update on TotalEnergies Papua LNG project indicate that lender due diligence, environmental and social review processes, financing documentation, and commercialization activities are all advancing. TotalEnergies has also publicly reiterated that the project remains “progressing as scheduled” despite NGO scrutiny around financing standards and Equator Principles compliance. TotalEnergies is also expanding its Asia-Pacific energy portfolio with a new 440MW solar project under construction in the Philippines.
Operator TotalEnergies EP PNG and its partners are currently working through the final pre-FID workstreams with FID expected in 2026. They are also looking into lender credit processes, project rebidding to optimize EPC costs, LNG marketing finalization, and development licensing approvals from the Papua New Guinea government. Japan’s JGC and Korea’s Hyundai E&C will also form a joint venture to construct an electric LNG production facility for the project. The facility will be located at ExxonMobil’s LNG plant in Central Province.
Fact Sheet for TotalEnergies Papua New Guinea LNG Project
Location: Gulf Province/Caution Bay, Papua New Guinea
Operator: TotalEnergies EP PNG
Resource: Elk-Antelope gas fields
Capacity: 5.4 MTPA LNG equivalent
Development model: Upstream and existing PNG LNG downstream infrastructure
Liquefaction concept: 4 electric LNG trains and 2 MTPA existing train capacity
Estimated capex: Over US$14bn
Stage: Pre-FID
Expected FID: 2026 pending
Estimated operations start: 2030-2031
TotalEnergies Papua LNG Development Timeline
FEED phase initiated: 2022
Integrated FEED launched: March 2023
Project rebid process: 2024-2025
Financing & lender diligence: 2024-2025
Public schedule revision announced: April 2024
Environmental/social lender review: 2026 ongoing
Expected Final Investment Decision (FID): 2026 ongoing
First Production Target: 2030-2031
Project Team
Operator
- TotalEnergies EP PNG Limited
Joint venture partners
- TotalEnergies – 40.1%
- ExxonMobil
- Santos Limited
- JX Nippon Oil & Gas Exploration
- Kumul Petroleum Holdings Limited
Downstream integration
- ExxonMobil PNG LNG
Government stakeholders
- Government of Papua New Guinea
- Papua New Guinea Department of Petroleum
- Papua LNG Joint Venture
TotalEnergies Pushes its Bid to Construct a Multibillion LNG Plant on the World’s Second-Largest Island
Reported July 25, 2024 – French energy giant TotalEnergies pushes its bid to construct a multimillion LNG plant on the world’s second-largest island nation. Moreover, the company is preparing to re-engage with the significant services companies required to realize its ambition of developing the Papua liquefied natural gas project. This comes at a time when the host Papua New Guinea government is desperate to see it proceed as soon as possible. The government views the Papua LNG project as critical to the country’s economic prospects, especially now, which is facing many economic headwinds. Earlier in April, the project was geared towards a final investment decision, but TotalEnergies postponed the development. The reason for this is that the project cost was deemed infeasible to accommodate construction, procurement, and engineering quotations. However, with both parties ready, the aim is set, and TotalEnergies promises to deliver.
The State of Affairs Regarding the LNG Plant on the World’s Second-Largest Island Nation
The construction of the multimillion LNG plant on the world’s second-largest island nation has been in much deliberation. Earlier this year, James Marape, the Prime Minister of Papua New Guinea, and Patrick Pouyanné, Chairman and CEO of TotalEnergies, met together to discuss the status of the Papua LNG project. TotalEnergies CEO reaffirmed to the Prime Minister that TotalEnergies, operator of the project, and its international partners ExxonMobil, Santos, JX Nippon, are fully committed to Papua LNG.
The CEO also shared the high interest of several LNG buyers for off-taking LNG from the Papua project. He cited this due to the strategic location close to key Asian markets. In that view, the project will review the structure of some packages and open the competition to an enlarged panel of Asian contractors. However, as a consequence, the completion time of the Papua LNG project is expected to be in 2025.
Significance of TotalEnergies LNG Project in Papua New Guinea
The significance of the LNG plant on the world’s second-largest island nation is expected to be elemental in the country’s energy sector. The Papua LNG plant seeks to integrate sustainability as one of its main pillars. This is already illustrated by the innovative solution to reinject CO2 from the producing wells. Regarding biodiversity, the project will seek to enhance the area and commit to a positive biodiversity net gain.
Furthermore, Papua LNG under TotalEnergies aims to leverage the growing demand in the Asian Market for liquified natural gas and other energy products. This venture promises to open doors to the economic growth of world’s second-largest island nation. This will also in turn ensure that the country channels these resources to other areas of development such as infrastructural growth. Moreover, the Papua LNG project promises to ensure that a skilled local workforce is established to facilitate in the project’s delivery. The project is expected to offer over 3,000 positions to nationals over the lifespan of the project.
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