First PNG LNG Cargo Departs Papua New Guinea for Japan

Researched by Industrial Info Resources Australia (Perth, Australia)--Exxon Mobil's Papua New Guinea (PNG) liquefied natural gas (LNG) production plant began producing LNG on April 28, 2014. Less than a month later, the first cargo ship is on its way to Japan.

Tokyo Electric Power Company Incorporated (TYO:9501) (TEPCO) (Tokyo, Japan) will receive the first of the produced LNG from the project, which has been four years in the making. At peak, 21,000 people were employed on the project. The number of Papua New Guineans on the project reached about 9,000; the remainder was made up of specialists and project professionals from all over the globe. Workers clocked more than 191 million work hours to develop the project.

An annual production capacity of 6.9 million metric tonnes of LNG, via two liquefaction process trains, will be produced later in the year, when PNG LNG reaches full output. The first train reached start-up at the end of April, and the second train began producing this month as additional wells were brought online.

Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), Santos Limited (ASX:STO) (Adelaide, Australia), Oil Search Limited (ASX:OSH) (Port Moresby, Papua New Guinea), Nippon Oil, Mineral Resources Development Company, Petromin Holdings and the PNG government are the joint venture participants.

Peter Graham, the managing director of Exxon Mobil PNG Limited, said: "This announcement is a historic moment for Papua New Guinea. This is the country's largest resource project, and it has taken the efforts of many thousands of people to bring it to fruition. With the support of government, our co-venturers and the local community, we are proud to celebrate the safe completion and first cargo from the PNG LNG Project."

"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."

The life expectancy of the PNG LNG project is 30 years. Long-term LNG supply agreements have been made with China Petroleum and Chemical Corporation (Sinopec) (Beijing, China), Osaka Gas Company Limited (TYO:9532) (Osaka, Japan), CPC Corporation (Taiwan) (Taipei, Taiwan) and Tokyo Electric Power Company Incorporated (TEPCO).

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