Papua LNG Project reaches key milestones toward investment decision

Papua New Guinea’s Petroleum Minister, Jimmy Maladina, has welcomed several commercial and contractual milestones for the Papua LNG Project, marking progress toward a Final Investment Decision (FID).

TotalEnergies announced that the project has completed its EPC tendering process and reduced its estimated capital expenditure to approximately US$14 billion. Key developments include an agreement to transfer operatorship to ExxonMobil, which is expected to improve operational efficiencies alongside existing PNG LNG facilities. Additionally, amendments to the Gas Agreement with the State have been finalized to reflect updated project economics while protecting the State’s long-term fiscal interests.

The project aims to develop the Elk-Antelope gas fields in Gulf Province, with a planned production capacity of roughly 5.6 million tonnes of LNG per year, primarily targeting Asian markets.