American engineering company KBR has won a contract to conduct conceptual development and feasibility study services for an energy hub in Papua New Guinea (PNG).

The contract was given by PNG national oil and gas company Kumul Petroleum for an energy hub in the Kikori region of the Gulf Province which will be named as Kikori Energy Hub (KEH).

As per the contract terms, KBR will be responsible to perform location and technology screening studies for Kumul Petroleum’s project.

The energy hub consists of an 180MW power generation facility, a mid-scale LNG liquefaction and regional export facility, a methanol process facility along with a condensate stabilization, storage and regional export facility.

The Kikori Energy Hub is an extension of the Western Pipeline Project owned by Kumul Petroleum. It is being developed to link oil and gas fields in the western provinces of PNG to the coast for export purposes.

Kumul Petroleum had recently finished the pre-FEED of the Western Pipeline Project. According to its managing director Wapu Sonk, the oil and gas firm is currently focused on the available downstream commercialization options it has to execute an economically healthy project.

Sonk added: “The extension of the Western Pipeline Project scope to now include a stand-alone downstream LNG process development, combined referred to as the Kumul LNG Project, is a natural progression.

“Whilst an Economic Impact Assessment will be undertaken to assess the ICV to PNG, it is estimated up to 30,000 local employment opportunities will be created during the construction phase, if the Project is proved feasible”.

The concept study is slated to be completed later this year.

KBR Asia Pacific president Greg Conlon said: “This is the seventh strategic study awarded to KBR this year for projects in South East Asia and Australia, demonstrating our strong regional expertise across onshore LNG and FLNG solutions, existing LNG plant and receiving terminal expansions and LNG regasification and distribution solutions.”

Image: Kumul Petroleum managing director Wapu Sonk signing the contract. Photo: courtesy of Kumul Petroleum Holdings Limited.