Oil Search Managing Director Peter Botten says he expects negotiations to begin shortly on cost sharing terms, conditions of government integration and PNG gas agreements.
“We are increasingly confident about the demand outlook for LNG from PNG, with a material shortfall in supply developing in the early 2020s, and will be targeting key northeast and southeast Asian markets for offtake agreements,” said Mr Botten.
Oil Search has identified a number of steps before entering front end engineering and design (FEED) for the proposed expansion, including:
- Presenting LNG expansion plans to PNG Government
- Complete gas agreement discussions with the PNG Government
- Complete Pre-FEED
- Sign binding downstream integration agreements.