Papua LNG has completed an engineering, procurement and construction tender process, with recommendations for contract awards now awaiting approval from the project’s co-venturers, TotalEnergies (NYSE: TTE) said.
The company also said the partners agreed to shift operatorship of the planned Papua New Guinea development to ExxonMobil (NYSE: XOM), citing the potential for operational links with the existing PNG LNG project. The change remains part of the project’s broader preparation for a final investment decision, which TotalEnergies has not announced.
Papua LNG Commercial Arrangements Are Updated
TotalEnergies said the project has finalized a revised gas agreement with the Papua New Guinea government. It also said it formed a marketing joint venture with state-related entities represented by Kumul Petroleum Holdings.
According to TotalEnergies, the venture is intended to market 2.4 million metric tons a year of LNG from planned total production capacity of 5.6 million metric tons annually. The company further said it had reached a heads of agreement for LNG offtake.
The reported milestones indicate that Papua LNG is advancing its commercial and contractual work ahead of a potential investment decision. The underlying agreements, contract recommendations, and timing for a final decision require confirmation through primary company and government disclosures.
