16/09/2026 by Cameron Clarke
France-based TotalEnergies has made substantial steps towards making a final investment decision (FID) for a liquefied natural gas (LNG) project in Papua New Guinea.
Thanks to cooperation with the country’s authorities and project partners, various key steps have been achieved for Papua LNG. First, the tendering process for engineering, production and construction has been completed. The company says some $4 billion has been saved by optimising the project design and opening the process to a larger pool of Asian contractors. This has brought the expected capital cost down to approximately $14 billion.
Second, a decision has been made to make ExxonMobil, the maker of the Mobil Pegasus gas engine oil, the designated operator. Exxon operates the nearby PNG LNG plant, so this is expected to maximise synergy.
Three other agreements have also been made. These include a final gas agreement with Papua New Guinea’s government, a new joint venture for marketing LNG and an offtake agreement.
The CEO and chairman of TotalEnergies, Patrick Pouyanné, said the developments represented decisive progress towards a final investment decision, adding:
“The transfer of operatorship enhances the project’s value creation and competitiveness by leveraging the synergies with PNG LNG during construction and operations phases. Papua LNG will enable the Company to secure significant LNG volumes, strategically located to support energy supply diversification across fast-growing Asian markets.”
He also expressed gratitude to James Marape, the prime minister of Papua New Guinea, and his government for their consistent and vital support in reaching these significant milestones.
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