By Henning Gloystein
SINGAPORE (Reuters) – ExxonMobil
Here are five facts about one of the world’s most remote and demanding liquefied natural gas (LNG) and condensate production and export facilities.
REMOVED
The Papua New Guinea LNG project (PNG LNG) was opened in 2014 in the South Pacific country, which, despite its wealth of natural resources, is one of the poorest and most politically troubled countries in Asia.
The main processing plant, the Hides Gas Conditioning Plant, is located in the rugged highlands of Hela Province and processes up to 1 billion cubic feet of gas per day from eight wells.
The site’s remote location required huge Russian Antonov cargo planes to be chartered to deliver the equipment to a jungle airstrip in Komo, the longest runway in Papua New Guinea.
Hides is connected to the LNG plant and export terminal near the capital Port Moresby by a 700-kilometer-long pipeline winding through the jungle.
(GRAPHIC: Earthquake IMG in Papua New Guinea, http://tmsnrt.rs/2ow1YLR)
Earthquake damage
On February 25, a strong 7.5 magnitude earthquake struck near the Hides plant, killing dozens of people and disrupting production. The quake damaged Komo’s power infrastructure and airfield.
Before the plant can be restarted, Exxon will inspect the pipeline and check the gas field for structural damage.
Exxon said the export facility near Port Moresby, where the gas is liquefied for tanker transport, was not damaged.
PRICE TAG
Exxon’s main partners in this project are currently the Australian Oil Search
In 2012, Exxon blamed unfavorable exchange rates and delays caused by disgruntled workers and landowners for a $3.3 billion increase in costs, bringing the total cost to $19 billion.
However, Exxon surprised the markets when it completed the project early in 2014, with production up to 25 percent above its annual design capacity of 6.9 million tons.
PROBLEM-FUL PAST
Things didn’t go smoothly for Exxon in Papua New Guinea.
In November 2017, the company evacuated some of its employees and suspended “non-essential work” due to unrest in Hela province. The violence was linked to national elections and disputes over royalties from the PNG LNG project.
In 2012, a landslide near a quarry used by Exxon killed at least 25 people and raised doubts about the safety of the excavations. Exxon said it had closed the quarry five months before the landslide.
BIGGER FUTURE
Just a few days before the earthquake on February 25, Exxon announced that it had agreed on plans with the French energy company Total.
It was not clear whether the earthquake had affected these plans.
(Reporting by Henning Gloystein; editing by Darren Schüttler and Christian Schmollinger)
