InterOil and Total agree LNG site
The partners in the LNG project in Papua New Guinea have agreed the location for developing the Elk-Antelope gas field
The partners in the Total-operated LNG project in Papua New Guinea have agreed the location for developing the Elk-Antelope gas field, which will provide the feedstock for the island’s second – and probably third – LNG terminal. The central processing facility will be near the Purari river, about 360km northwest of Port Moresby, and connected to the LNG facility by on and offshore gas and condensate pipelines.
Analysis of the latest well test data from the Elk-Antelope gas field in Papua New Guinea supports a two-train liquefied natural gas project. InterOil’s chief executive Michael Hession said the Antelope-5 well had exceeded all previous Antelope well results and “confirm our confidence that the field can support two trains.”
Appraisal of Elk-Antelope is expected to finish later this year and will be followed by certification of the resource volume, with Total then due to make payment under the terms of its agreement. Total is also now the operator of the PRL15 joint venture and the Elk-Antelope field.
The venture is now to enter the basis of design. “Sites were chosen for their technical, economic and environmental benefits and followed extensive surveys and studies by Total over the past year…. The LNG facility near Port Moresby has potential for synergies with existing infrastructure and sufficient land for significant LNG train expansion,” Hession said 2 July. Early works for the front-end engineering and design are due to follow later that year.
The French major farmed into the project before the full extent of the reserves had been appraised. InterOil reserved the right to decide when to declare the field’s reserves, the basis for calculating Total’s payment for the farm-in.