Business Advantage Papua New Guinea
Exxonmobil hoping for ‘new chapter’ in LNG production
A senior executive at one of the world’s biggest petroleum companies has some bullish predictions for PNG.
Neil Chapman, Senior Vice President of Exxonmobil believes that LNG capacity in Papua New Guinea could double. Speaking at the Asia-pacific Economic Co-operation in Port Moresby, he said Exxonmobil is talking with the government about a threetrain expansion at its LNG plant: from two to five.
‘This will involve several partners and will roughly double LNG capacity from Papua New Guinea. I’m hopeful that, with support of the government, we can come to an agreement on terms soon and together move forward on a new chapter in PNG’S energy story. There’s no question about the appetite for LNG throughout Asia being strong.’
Chapman believes the Asian region is entering a ‘Golden Age for gas’, and that PNG is ‘well positioned to benefit’. But he cautioned that although the country’s resources are ‘abundant’, they are not easily accessible.
‘Every shipload of LNG that sails from Port Moresby represents opportunity and enhanced energy security for the dynamic economies of this region.
‘Over the next couple of decades, about half of the world’s economic expansion is expected to take place right here in Asia.
‘When natural gas is used for electricity generation it produces up to 60 per cent fewer greenhouse gas emissions.
‘Helping fuel that engine will be abundant, cleaner-burning natural gas, some of it shipped from here in Papua New Guinea to the markets throughout the Asia-pacific.
‘Substituting natural gas for coal in power generation provides an immediate, large-scale and cost-effective option for making significant progress in lowering the global emissions while improving air quality.’