AGL, ExxonMobil Studying LNG Project in Papua New Guinea
by AFX News Limited
July 03, 2007
AGL Energy Ltd said it has agreed to join an
ExxonMobil Inc led project to investigate the merits of building a liquefied
natural gas (LNG) project in Papua New Guinea to commercialize the nation's
large gas resources.
Other participants include Oil Search Ltd and Santos Ltd.
Last year, the PNG gas partners suspended a plan to construct a gas pipeline
from PNG to markets in Australia.
Oil Search said at the time that it believed more value could be gained by
commercializing the large PNG gas resources through the development of a
world-scale LNG industry in PNG.
The study, costing about US$60 million, will investigate the merits of building
an LNG project capable of producing 5 million-6.5 million tonnes a year of liquefied
Oil Search is also involved in a study with British Gas on commercializing
Separately, Australian and Toronto stock exchange listed InterOil Corp has
proposed a 9-million-tonne-a-year LNG project in PNG together with a
1-million-tonne-a-year natural gas liquids plant, with initial production targeted
Copyright 2007 AFX News Limited. All Rights Reserved.
PNG LNG Project
ExxonMobil; Oil Search Limited; Santos; Nippon Oil Exploration; AGL; MRDC); Eda Oil
Port Moresby Papua New Guinea