Exxon's Papua New Guinea Venture to Export 2 Million Metric Tons of LNG per Year to China

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Researched by Industrial Info Resources (Sugar Land, Texas)--China, the world's second-largest energy user, has agreed to buy liquefied natural gas (LNG) from Exxon Mobil Corporation (NYSE:XOM) subsidiary Esso Highlands PNG LNG (Port Moresby, Papua New Guinea). This is an $11 billion project developed in Papua New Guinea that involves the construction a dual train with a capacity of 6.2 million tons a year.

Exxon and its partners, including Oil Search Limited (ASX:OSH) (Sydney, Australia) among others, are waiting for final environmental approvals at the end of this year to start the construction of this undertaking, which is scheduled to and start production by 2013 or 2014.

The venture in Papua New Guinea is already planning a third train with a capacity of 3.15 million tons per year, scheduled to come online by 2017.

Meanwhile, Liquid Niugini Gas Limited (Cairns, Australia) has plans to build a new plant that will be strategically located adjacent to the InterOil refinery in Napa Napa. At present, the company is waiting for the green light to begin the bidding process for construction. In its first stage, the LNG-production plant will be producing 5 million tons per year and will be ready for a second train addition.

China is building more than 10 LNG terminals on the eastern coast to double the use of the fuel by 2010 and even double terminal capacity between 2010 and 2015.

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