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More funding secured for PNG LNG

4th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Global oil giant Exxon Mobil Corporation, through its subsidiary Esso Highlands, has secured a further $1.5-billion in project financing to complete the Papua New Guinea (PNG) liquefied natural gas (LNG) project.

The latest financing agreement took the total project financing facility to some $15.5-billion, and was raised to supplement current financing. The funds were sourced from a co-venturer and commercial bank lenders, and would be used to finance the debt component of the project cost.

The bill for the PNG LNG plant has remained unchanged at $19-billion, and ASX-listed Oil Search said on Friday that the project remained on track to deliver its first LNG in the second half of 2014.

The PNG LNG project’s gas would be transported by pipeline to a liquefaction plant with a capacity of 6.9-million tonnes a year, some 25 km from Port Moresby.

The project is being developed by ExxonMobil, Oil Search, Santos and Nippon Oil.

Edited by Creamer Media Reporter

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