PAPUA New Guinea is now recognised as having one of the lowest-cost greenfield LNG projects in the world, says InterOil chief executive officer Michael Hession.
Giving an update of Elk-Antelope drilling and upraising of its well, Mr Hession said having recognised as the lowest-cost greenfield Liquefied Natural Gas project gives PNG a huge advantage over other competing LNG projects in Australia and Asia.
"The project promises to benefit from the pioneering PNG LNG Project, which has shown the world that PNG can build and operate mega-projects," he said in a brief update.
"We believe Elk-Antelope will support at least a two-train project and will benefit from several advantages over other gas developments in PNG."
While updating on the project concept, especially the proposed LNG plant facilities and pipeline routes, Mr Hession sees the setting of the gas project as ‘the natural advantage of Elk-Antelope’ given naturally fitting of location as well as having a greater advantage with the experience of previous project existence and over any possible economic viability factors that would influence any decision. "It is closer to infrastructure than any other developed gas field in the country and it is close to a major river, an important cost benefit when transporting people and equipment.
"It also has the natural advantage of being in a less-mountainous region than other major gas fields – a big factor in development cost.
"More importantly, it is a single gas field that can be developed without the expense of pipelines and processing facilities to collect gas from multiple fields," the CEO added.
The Elk-Antelope project is expected to produce over 9.9tcf of gas over a period of 40 to 50 years.
The project is worth over K38.4 billion to K51.2 billion. Work is expected to start early in 2016 followed by actual construction work after the front end engineering design (FEED) and final investment decision (FID) are completed.
The project is expected to be led by global energy giant and France based Total SA in partnership with InterOil, Oil Search Limited and National Petroleum Company of PNG (NPCP) as the State nominee to hold 20.5 per cent equity.
Meanwhile, Minister for Petroleum and Energy Nixon Duban said the Government wants to see the project kick off as soon as it can while expecting all the project partners to work together. ONEPNG/PostCourier