Projects

The initial ExxonMobil-led PNG Gas Project concept involved developing gas fields in the PNG Highlands, processing the natural gas to sale specifications, and transporting the gas by pipeline to customers in Australia. The PNG Government intended participating in the Project by exercising its equity participation option and approached ADB seeking financial assistance.

However, in August 2006 the developers of the Australian gas transportation and delivery system discontinued further front-end engineering and design (FEED) work due to a blowout in projected construction costs. After subsequent study, the project proponents announced on 1 February 2007 that they were formally abandoning their joint venture for the PNG Gas Project for the transportation of gas by pipeline to Australian customers.

Project proponents subsequently began investigating liquefied natural gas (LNG) development options. In April 2008, the ExxonMobil-led joint venturers (comprising ExxonMobil, Oil Search, Santos, AGL Energy, Nippon Oil Exploration and the Mineral Resources Development Corporation (MRDC) reached agreement with the PNG Government on fiscal terms for an LNG project scheme. A decision to commence FEED activities is expected in mid-2008. FEED activities will include identifying and agreeing financing arrangements, which may include assistance from ADB to support the PNG Government’s exercising of its equity participation option.