PNG LNG

PNG LNG Inc is the Bahamas-based parent holding company of Liquid Niugini Gas Ltd, operator of an LNG natural gas liquefaction project in Papua New Guinea.

Technical description

The LNG plant will be built adjacent to the oil refinery owned by InterOil near Port Moresby. The LNG plant will consist of one processing train with nominal capacity of 5 million tonnes with option to add second train to increase total capacity up to 9 million tonnes of LNG and 1 million tonnes of natural gas liquids per year. It will be supplied with natural gas from Elk and Antelope gas and condensate fields by natural gas pipeline. The preliminary engineering and evaluation design work were done in spring 2007. The plant will use ConocoPhillips' proprietary natural gas liquefaction technology (Optimized CascadeSM Process) and it is to be constructed by Bechtel.

The project is expected to cost US$5 billion to US$7 billion. The first cargo of LNG is planned to be delivered in 2012.

Project company

PNG LNG Inc is owned equally by InterOil Corp., Merrill Lynch Commodities, Inc., and Pacific LNG Operations Ltd. There are provisions for the entry of strategic partners, and for inclusion of the Government of Papua New Guinea.

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