Under the terms of the MOU, ExxonMobil PNG will supply electricity and gas for domestic power generation from the PNG LNG project to support PNG’s urgent power needs.
PNG LNG will use a portion of the natural gas supply allocated for domestic use to provide up to 25MW of electrical power, or approximately 20% of Port Moresby’s current generation capacity, for an interim period.
The remainder of the gas supply will be used by new state-owned gas-fired power generation unit as fuel which will be located near the LNG Plant outside of Port Moresby.
ExxonMobil PNG managing director Peter Graham said "This agreement enables a reliable long-term supply of natural gas to support Port Moresby’s urgent power generation needs."
The agreement has provision to award of a petroleum development licence (PDL) and associated pipeline licenses for the P’nyang gas field in PRL 3 (oil search – 38.51%) as well as expansion of PNG LNG Project, which could include potential additional train development.
Drill preparations will be commenced by Esso PNG P’nyang, the operator of the P’nyang field and an ExxonMobil subsidiary, along with its co-venture partners, for the P’nyang appraisal well, which is expected to commence within two years of the awarding of the petroleum development license.
