Papua New Guinea (PNG) is expected to start producing liquefied natural gas (LNG) in 2013 or early 2014.
PNG's The National reports that Oil Search Ltd., the country's largest oil and gas exploration and development company, announced that the LNG project is projected to produce '6.3 million tonnes per annum (mmtpa) of LNG' and that it 'will utilise approximately one billion cubic feet per day (bcf/d) of gas, which will be supplied from the core oil and gas fields in the country'.The project will be under ExxonMobil.
LNG is a natural gas that is not only odorless and colorless but also non-corrosive and non-toxic and according to the report, Asia is likely to be the main market.
It also states that 'the LNG owners have elected to jointly market the initial 6.3 mmtpa from the development, with operator ExxonMobil as the marketing representative' and 'Oil Search expects to have a project interest of 28% to 31%, subject to the final unitisation of the gas supplying fields'.
Oil Search is publicly listed on both the Port Moresby and Australian Stock Exchange.