EHL/Nippon/MRDC/Santos/OS/KPH – Port Moresby Esso Highlands PNG LNG Plant – National Capital District - Project Profile
"EHL/Nippon/MRDC/Santos/OS/KPH – Port Moresby Esso Highlands PNG LNG Plant – National Capital District - Project Profile" contains information on the scope of the project including project overview and location. The profile also details project ownership and funding, gives a full project description, as well as information on contracts, tendering and key project contacts.
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Esso Highlands Ltd (EHL), a subsidiary of Exxon Mobil Corporation (ExxonMobil), JX Nippon Oil & Energy Corporation (Nippon), Mineral Resources Development Company Ltd (MRDC), Santos Ltd. (Santos), Oil Search Ltd (OS) and Kumul Petroleum holdings Ltd (KPH) joint venture is planning to undertake the construction of the Port Moresby Esso Highlands PNG LNG Plant project in National Capital District, Papua New Guinea.
The project involves an integrated development, including gas production and processing facilities in PNG’s Southern Highlands and Western provinces, liquefaction and storage facilities near Port Moresby. The project is to be developed in phases.
The first phase of the development is a two-train LNG liquefaction facility capable of producing 6.9MTPA of LNG, two LNG storage tanks capacity of 160,000m3, 2.4km LNG Jetty, 292km onshore pipeline and 407km offshore pipeline.
The second phase will include the drilling of two new wells and the installation of field pipeline at Angore It includes the construction of a third LNG train of capacity 4MTPA LNG train and other related facilities. However, the final investment decision (FID) is expected by the end of 2017.
The third phase will see compression capacity increased at the Hides gas conditioning plant; the fourth phase will include the development of Juha gas fields; the fifth phase will include the construction of Agogo production facility and a pipeline installed connecting to the main gas pipeline. The exact timelines for these phases are yet to be revealed.
The pipeline will link to the Hides gas conditioning plant (25.6 million m3 a day) and the Juha production facility (7 million m3 per day). Between the Juha and Hides facility, there will be a 0.36m gas pipeline and a 0.2m liquids pipeline for condensate.
The condensate will be handled at the existing Kutubu and Agogo processing plants and exported from the existing Kumul platform on the coast. The gas produced as a byproduct will be returned to the LNG pipeline. The plant will use ConocoPhillips technology.
ACIL Tasman was awarded the contract to prepare reports on the environmental impact and also the economic impact of the project for PNG.
InterOil Corporation completed the pre-front-end engineering and design (FEED) preliminary engineering and evaluation design work for the project in April 2007. The FEED contract for the project was awarded to Bechtel Corporation in March 2008.
Chiyoda JGC Joint Venture, a JV of Chiyoda Corporation and JGC Corporation, was appointed as major EPC contractor for the project on December 9, 2009.
EHL appointed Clough and CB&I joint venture as the EPC contractor for gas conditioning plant; Saipem SPA to construct the offshore pipeline; Spiecapag to build the onshore pipelines; and a joint venture between McConnell Dowell Constructors and Consolidated Contractors Group to procure and construct the Komo Airfield.
On October 5, 2010, the fabrication and construction contract for the topsides for the PNG LNG condensate offloading jetty was awarded to BAM Clough Joint Venture, a 50/50 joint venture between BAM International bv and Clough Operations Pty Ltd.
The US$14,400 million loan agreement was signed with the six ECAs including US Exim, JBIC, China Exim, NEXI, SACE and EFIC and seventeen European, Asian and Australian commercial banks and EM as a co-lender.
Construction commenced on the project in the first quarter of 2010. In January 2011, EHL temporarily halted the construction work at the Hides Gas Conditioning Plant due to disputes between local landowners and EHL.
The construction of the 407km offshore pipeline for the project started connecting Omati in the Gulf Province with the LNG Plant. The pipeline is 36 inches in diameter and will be laid from two offshore pipe laying vessels, the Semac 1 and the Castoro 10. The construction work on the offshore pipeline was completed in February 2013.
On November 27, 2012, Clough Curtain Joint Venture (a JV of Clough Limited and Curtain Brothers) was awarded US$77 million construction contract for upstream infrastructure works.
On July 23, 2013, Wood Group PSN was appointed to provide engineering, procurement, construction and maintenance (EPCM) services to support PNG LNG operations. Under the contract, WGPSN will provide brownfield engineering and procurement support to ExxonMobil’s operations in PNG, including construction and maintenance services to both the Hides gas conditioning plant in the highlands, and the LNG plant northwest of Port Moresby.
On October 4, 2013, the project secured additional US$1.5 billion in debt finance. Construction work on the first phase was completed ahead of scheduled on April 29, 2014.
In January 2015, ExxonMobil and its partners signed a memorandum of understanding (MoU) for the addition of a third LNG train.
The final investment decision (FID) on the third train in second phase is expected by the end of 2017.
Planning Authority: Department of Petroleum & Energy, PGN
Surveyor (Phase I): InterOil Corporation
Financial advisors (Phase I): Export-Import Bank of the United States
FEED Contract (Phase I): Bechtel Corporation
Construction Contract (Upstream Infrastructure) (Phase I): Clough Curtain Joint Venture (a JV of Clough Ltd and Curtain Brothers)
Fabrication and Construction Contract (Phase I): BAM Clough Joint Venture, a joint venture between BAM International bv and Clough Operations Pty Ltd
EPC Contract (Phase I): Chiyoda Corporation, JGC Corporation, A JV of Clough and CB&I, Saipem SPA, Spiecapag, McConnell Dowell Constructors and Nabors Drilling
EPCM Contract (Phase I): Wood Group PSNScope
The project involves the construction of a new LNG plant in Port Moresby, Southern Highlands, National Capital District, Papua New Guinea.
The US$23,000 million project includes the following:
1. Construction of two-train LNG liquefaction facility capable of producing 6.9MTPA under the first phase
2. Construction of third train with the capacity of 4MTPA under the second phase
3. Capacity expansion of Hides gas conditioning plant under the third phase
4. Development of Juha gas fields under the fourth phase
5. Construction of Agogo production facility under the fifth phase
6. Construction of two LNG storage tanks 160,000m3Reasons To Buy
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