Papua LNG becoming a reality under the global spotlight

PORT MORESBY – Papua LNG project is getting more attraction around the world as it progresses to become a reality.

Project developer Total SA managing director Philippe Blanchard said this Monday.

“What we have been communicating is that the idea for us is to finalise all the engineering studies and be able to enter into FID (final investment decision) and you have heard that the State has announced a State negotiating team,” he said

“We will also start discussion on the gas agreement and by year-end, we have the gas agreement agreed to between the State of Papua New Guinea and the developers and we are entering into FID,” he said. “So clearly the project is getting more attraction and it is becoming more a reality as we are progressing.”

Blanchard and Kumul Petroleum Holdings Limited managing director Wapu Sonk farewelled two KPHL national staff, who would be on secondment in Total head office in Paris, France, to learn more about marketing of the Papua LNG to the global market.

Mathilda Namorong, a senior lawyer and Ephraim Tammy, a petroleum engineer will leave for Paris next month.

“It’s a very important day for us as Total and Kumul has decided to join to be able to market their own share of LNG and condensate for Papua LNG,” Blanchard said. “I believe it’s going to be a very successful joint venture. Total has been in the LNG market for a very long time so we have that experience of that market and joining Kumul (KPHL) means that we will be joining with PNG who have acquired over the last four years and a very strong knowledge of the market.”

Blanchard said Papua New Guinea has proven around the world that PNG LNG is a very reliable source and that you can count on them to deliver the gas.

Sonk said the difference is that in the PNG LNG project all the joint venture partners gave the marketing rights to do the marketing for condensate and LNG.