Report: Exxon, Total seen committing $6B for Papua New Guinea LNG

|By:, SA News Editor

Exxon Mobil (XOM +1.2%), Total (TOT +0.8%) and Oil Search (OTCPK:OISHF) likely will give the go-ahead by next year to commit more than $6B toward adding liquefied natural gas export capacity in Papua New Guinea, Nikkei Asian Review reports.

The three companies control the undeveloped Elk-Antelope gas fields project in the country, and analysts expect them to present a plan to integrate the facility with the existing XOM-operated PNG LNG export plant as part of a cooperative approach to save costs instead of being a standalone facility.

Papua New Guinea's total proven gas reserves stood at 7.4T cf at the end of 2016, but some analysts estimate that the country's gas resources are enough to support expansion of export capacity from 6.9M tons/year currently to as much as 20M tons/year within the next decade.

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