Exxon Mobil has commenced production of liquefied natural gas (LNG), as part of $19bn PNG LNG project, in Papua New Guinea ahead of schedule.
The first cargo is scheduled to be delivered before midyear to Asia markets while first LNG train production will increase over the coming weeks.
With work underway on the second train, LNG production from the second train is likely to commence in near future.
Operated by ExxonMobil affiliate ExxonMobil PNG, the project will produce more than 9 trillion cubic feet of gas in approximately 30 years of operations.
ExxonMobil Development Company president Neil Duffin said that the project revenue and profitability are supported by long-term LNG sales contracts which cover more than 95% of the plant’s capacity.
"The project is optimally located to serve growing Asia markets where LNG demand is expected to rise by approximately 165 percent between 2010 and 2025, to 370 million tonnes per year," Duffin added.
Co-venturers for the project include Oil Search, National Petroleum Company of PNG, Santos, JX Nippon Oil & Gas Exploration, Mineral Resources Development Company and Petromin PNG Holdings in addition to ExxonMobil.