Western LNG on the Horizon

A map of Horizon's proposed Western LNG Project.

A map of Horizon's proposed Western LNG Project.

As operator of two of the four licences that will comprise the Western Province gas aggregation scheme, Horizon Oil has progressed planning for the proposed Western LNG Project in Papua New Guinea.

Pre-front end engineering and design (FEED) studies of the key elements of the project – upstream gas processing, export pipelines and the liquefaction facility – were substantially completed during the December 2017 quarter, with contractors selected who are qualified and possess a good level of PNG experience.

The preliminary results of these studies, which importantly include Class IV cost estimates, are materially inline with Horizon’s preliminary estimates and confirm the technical and economic viability of the project.

The results of the pre-FEED studies are now being integrated, and planning is underway for a field campaign to confirm the suitability of the selected pipeline routes and offshore liquefaction facility location.

Horizon successfully completed a number of transactions last year that sees the company represented in all four gas fields that will supply the Western LNG project, and has a 28 per cent interest in the total resource.

Horizon and partner Repsol now operate all the licences and hold 70 per cent of the total gas resource to be aggregated to underpin the proposed 1.5 MMt/a Western LNG project, facilitating the planned multi-licence development.

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