Papua New Guinea: Partners Establish PNG Floating LNG Limited Company

Petromin PNG Holdings Limited, Höegh LNG Limited and DSME E&R Limited have signed a firm agreement establishing PNG Floating LNG Limited, which is the holding company for the Partners’ LNG FPSO project in Papua New Guinea.

The agreement builds on the Cooperative Development Agreement signed between the partners in June 2010 and the Joint Development Agreement signed in November 2010, and demonstrates the partners’ commitment to assist PNG in its further development of its LNG industry.

In December 2010, Papua New Guinea’s National Executive Council (NEC) endorsed the Petromin led LNG FPSO project, making it the only approved FLNG project in PNG. The project consists of an LNG Floating Production Storage and Offloading (FPSO) vessel with an annual production capacity of 3 MTPA. The vessel will be moored in the Gulf of Papua and connected via a subsea pipeline to shore-based feedgas supply.

The partners are currently working with a number of upstream companies operating in PNG to secure feedgas supply for the project.

The following joint statement is made by the Managing Director of Petromin, Mr. Joshua Kalinoe, the Chief Executive Officer of DSME E&R, Mr. Jin Seok Kim and the Chief Executive Officer of Höegh LNG, Mr. Sveinung Støhle: “This agreement is a new milestone for the PNG Floating LNG project and proves the steady progress towards an FID currently planned for end 2012. We remain positive that an LNG FPSO project will be a vital part for the future development of gas resources in PNG.”

Over the last 4 years Höegh LNG has together with partners, including DSME, developed the LNG FPSO design and technology. The vessel and the processing systems will be constructed at the DSME ship yard in South Korea, and will be capable of producing up to 3 million tons of LNG annually, and has storage capacity of 220,000 cubic meters.

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Source:Hoegh ,  May 30, 2011;