PNG, Taiwan ink LNG deal

THE PNG liquefied natural gas (LNG) project has signed off its last 1.2 million tonnes per annum (mta) of LNG to China Petroleum Co PNG-Taiwan LNG deal, The National reports.

Esso Highlands Ltd, operator of the US$15 billion (K40 billion) LNG project, signed the 20-year sales deal with the Asia-Pacific LNG customer, last of the four LNG customers for the total 6.6mta to be produced when the project exports its first cargo in late 2014 or early 2015. 

Esso Highlands Ltd is a subsidiary of ExxonMobil Corp.

“This important agreement with CPC will deliver a reliable supply of cleaner-burning natural gas to meet Taiwan’s growing energy demand and begin a new and lasting relationship between Taiwan’s largest energy importer and PNG’s first LNG project,” Ron Billings, vice president, LNG, ExxonMobil gas and power marketing, said.

Second major partner Oil Search Ltd’s managing director Peter Botten said: “The PNG LNG project is now fully contracted for the entire plant capacity, and the way is clear to move forward to financial close.”

Mr Billings said: “It also marks a significant step forward for the PNG LNG project. With this SPA, all of the project’s production capacity has been committed on a long-term basis.

“We are now looking forward to the finalisation of the financing arrangements with lenders which is expected in the first quarter of 2010.”

CPC Corp is the largest energy importer in Taiwan.

The previous three SPAs signed last year (2009) were with Japan’s Osaka Gas Co Ltd, for 1.5mta of LNG on Dec 22; with Tokyo Electric Power Co Inc (Tepco) for 1.8mta of LNG on Dec 7; and on Dec 3 with Unipec Asia Co., Ltd., a subsidiary of China Petroleum & Chemical Corp (Sinopec) for 2.0mta of LNG.

(CPC) Taiwan.

Esso Highlands Ltd, operator of the US$15 billion (K40 billion) LNG project, signed the 20-year sales deal with the Asia-Pacific LNG customer, last of the four LNG customers for the total 6.6mta to be produced when the project exports its first cargo in late 2014 or early 2015. 

Esso Highlands Ltd is a subsidiary of ExxonMobil Corp.

“This important agreement with CPC will deliver a reliable supply of cleaner-burning natural gas to meet Taiwan’s growing energy demand and begin a new and lasting relationship between Taiwan’s largest energy importer and PNG’s first LNG project,” Ron Billings, vice president, LNG, ExxonMobil gas and power marketing, said.

Second major partner Oil Search Ltd’s managing director Peter Botten said: “The PNG LNG project is now fully contracted for the entire plant capacity, and the way is clear to move forward to financial close.”

Mr Billings said: “It also marks a significant step forward for the PNG LNG project. With this SPA, all of the project’s production capacity has been committed on a long-term basis.

“We are now looking forward to the finalisation of the financing arrangements with lenders which is expected in the first quarter of 2010.”

CPC Corp is the largest energy importer in Taiwan.

The previous three SPAs signed last year (2009) were with Japan’s Osaka Gas Co Ltd, for 1.5mta of LNG on Dec 22; with Tokyo Electric Power Co Inc (Tepco) for 1.8mta of LNG on Dec 7; and on Dec 3 with Unipec Asia Co., Ltd., a subsidiary of China Petroleum & Chemical Corp (Sinopec) for 2.0mta of LNG