InterOil moves forward with proposed LNG plant in Papua New Guinea

The planned three million tonne per annum (mtpa) land-based modular LNG plant in the Gulf Province is intended to be developed in two phases.

The LNG plant is expected to process an estimated 2.25 trillion cubic feet (tcf) of natural gas over 15 years.

In return for its commitment to fully fund the development and construction of the LNG plant, EWC will be entitled to a fee of 14.5% of the proceeds from the sale of LNG from the plant, less agreed deductions and financing costs.

EWC will also own a 14.5% interest in the operating company of the LNG plant.

The LNG project is designed to link with InterOil’s proposed condensate stripping plant being pursued in joint venture with Mitsui Group and to accelerate the intended monetization of the Elk and Antelope fields.

The agreement with EWC also provides a framework for the possible expansion of the initial LNG plant’s capacity to up to 8mtpa.

Liquid Niugini Gas is InterOil’s joint-venture LNG project company with Pacific LNG Operations.

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