Key gas field for PNG LNG expansion gets resource upgrade

|By:, SA News Editor

Exxon Mobil (XOM -0.1%) and partner Oil Search Ltd. (OTCPK:OISHF) say the natural gas resource at their jointly owned P’nyang field in Papua New Guinea increased 84% to an estimated 4.36T cf from a 2012 assessment.

Oil Search says "there is now ~11T cf of certified gross undeveloped 2C gas resource available to support the proposed development of [8M metric tons/year] of additional, globally competitive LNG capacity at the existing PNG LNG plant site."

PNG LNG currently has a nameplate capacity of 6.9M metric tons/year but consistently operates above it; in December, it averaged 8.6M metric tons/year and is expected to be able to maintain rates above 8.5M/year when operational.

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