ExxonMobil Starts Production Ahead of Schedule at PNG LNG Project
*Project remains on target for first LNG cargo in the coming weeks
*Production ramp-up continuing
*PNG LNG project is expected to produce more than 9 trillion cubic feet of
IRVING, Texas -- April 28, 2014
Exxon Mobil Corporation (NYSE:XOM) today announced the $19 billion PNG LNG
project has started producing liquefied natural gas (LNG) in Papua New Guinea
ahead of schedule.
Production from the first LNG train will increase over the coming weeks and
the first cargo is expected to be shipped to Asia markets before midyear.
Work on the second train is progressing and LNG production from this unit is
expected to start in the next several weeks.
The project, which is operated by ExxonMobil affiliate ExxonMobil PNG Limited,
is expected to produce more than 9 trillion cubic feet of gas over an
estimated 30 years of operations.
“The PNG LNG project exemplifies ExxonMobil’s leadership in project execution,
advanced technologies and marketing capabilities,” said Neil W. Duffin,
president of ExxonMobil Development Company. “Project revenue and
profitability are underpinned by long-term LNG sales contracts covering more
than 95 percent of the plant’s capacity.”
The project is an integrated development that includes gas production and
processing facilities in the Southern Highlands, Hela, Western, Gulf and
Central provinces of Papua New Guinea. Approximately 435 miles of pipeline
connect the facilities, which include a gas conditioning plant and
liquefaction and storage facilities with capacity of 6.9 million tonnes of LNG
Flooding, minimal pre-existing infrastructure and extremely steep slopes were
among obstacles that were overcome in constructing the project. Pipe had to be
airlifted in some areas because the soil could not support heavy machinery and
lack of infrastructure required construction of supplemental roads,
communication lines and a new airfield.
“The project is optimally located to serve growing Asia markets where LNG
demand is expected to rise by approximately 165 percent between 2010 and 2025,
to 370 million tonnes per year,” said Duffin.
In addition to ExxonMobil PNG Limited, co-venturers include Oil Search Ltd.,
National Petroleum Company of PNG, Santos Ltd., JX Nippon Oil & Gas
Exploration Corporation, Mineral Resources Development Company (representing
landowners) and Petromin PNG Holdings Limited.
ExxonMobil continues to assess and advance new expansion and development
opportunities in Papua New Guinea.
ExxonMobil, the largest publicly traded international oil and gas company,
uses technology and innovation to help meet the world’s growing energy needs.
ExxonMobil holds an industry-leading inventory of resources, is the largest
refiner and marketer of petroleum products, and its chemical company is one of
the largest in the world. For more information, visit www.exxonmobil.com or
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CAUTIONARY STATEMENT: Statements of future events or conditions in this
release are forward-looking statements. Actual future results, including
project plans, schedules, costs, and capacities; ultimate recoveries; and
demand projections could differ materially due to changes in market conditions
affecting the oil and gas industry or long-term oil and gas price levels;
political or regulatory developments; reservoir performance; timely completion
of development projects; technical or operating factors; the outcome of future
commercial negotiations; and other factors discussed under the heading
"Factors Affecting Future Results" in the Investor Information section of our
website (www.exxonmobil.com) and in Item 1A of our most recent Form 10-K.
References to quantities of gas include volumes that are not yet classified as
proved reserves under SEC rules but that we believe will be produced in the
future. The term "project" as used in this release does not necessarily have
the same meaning as under any government payment transparency reporting rules.
Upstream Media Relations, 713-656-4376
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