Esso Highlands Limited, a subsidiary of Exxon Mobil Corp. and operator of the PNG LNG Project, announced Tuesday that the Project participants have finalized a Sale and Purchase Agreement with Osaka Gas Co., Ltd. for the long-term sale and purchase of liquefied natural gas (LNG)
totalling approximately 1.5 million tonnes per annum (MTA). The agreement is effective for a 20-year period.
"We are pleased to have entered into this important agreement with a leading LNG customer
in Japan and to have started a new relationship with Osaka Gas," said Ron Billings, vice
president, LNG, ExxonMobil Gas and Power Marketing. "The PNG LNG project will provide a
clean-burning supply of natural gas to help meet growing energy demand in Japan."
The PNG LNG co-venturers recently announced approval to proceed with the development
of the Project pending completion of all sales and purchase agreements with LNG customers
and finalization of financing arrangements with lenders.
The PNG LNG Project is an integrated development that includes gas production and
processing facilities, onshore and offshore pipelines and liquefaction facility with the capacity
of 6.6. million tonnes per year. Participating interests include affiliates of Exxon Mobil
Corporation (including Esso Highlands Limited as operator, 33.2 percent), Oil Search Limited
(29.0 percent) Independent Public Business Corporation (PNG Government, 16.6. percent),
Santos Limited (13.5 percent), Nippon Oil Exploration (4.7 percent), Mineral Resources
Development Company (PNG landowners, 2.8 percent) and Petromin PNG Holdings Limited
(0.2 percent).
Osaka Gas is a major energy supplier in Japan headquartered in Osaka with a customer
base of 6.9 million. The company purchased a total of 7.4 million tonnes of LNG in 2008.
