Expert: PNG has bigger gas potential

PAPUA New Guinea is a country capable of being host to five liquefied natural gas liquefaction plants to absorb the abundant gas resources currently being explored and developed or are at the under developed stages, according to a world renowned energy expert.

Fereidun Fesharaki, the chairman of Facts Global Energy (FGE) told an industry gathering recently in Port Moresby that given the current petroleum discoveries and developments in the country, PNG has positioned itself in building five (5) LNG trains to add to the demand for massive global LNG supplies planned post-2017 when demand of LNG will increase.

Mr Fesharaki whose work is well recognised worldwide for pioneering oil and gas market analysis and studies of the Asia Pacific/Middle East energy markets since the early 1980s said that already the ExxonMobil led PNG LNG Project is a two train with a third train on sight while InterOil led Elk-Antelope gas project proposal for two trains would give PNG a 5th LNG train.

The world’s energy expert stated that when the Elk-Antelope LNG project comes into production steam and the third train is added by ExxonMobil, PNG would then be poised to set a mark on the LNG producing countries’ map when all the petroleum prospecting licences are fully developed.

He said the 5 train LNG would possibly increase when more gas discoveries are developed in the future. InterOil Corporation chief executive officer Michael Hession alluded to Mr Fesharaki’s projection that PNG truly stands to be a player in the global energy markets.

He said more drillings are being undertaken at various exploration sites in the Elk-Antelope project sites in 2014 and will continue into 2015 to appraise the gas reserves so that the proposed 2 LNG trains are built. "We are drilling at least eight wells. Two of these wells will continue appraisal of Elk-Antelope, the giant gas field that we are developing for Papua New Guinea’s next LNG project.

"Elk-Antelope will be another massive nation-building project on the scale of PNG LNG. "We are confident the field will support at least two production trains and possibly more. "The Elk-Antelope joint venture expects to finish front-end engineering and design in 2016 followed by a final investment decision. "As we move towards that decision, we will build off the reputation that Papua New Guinea has created as a country that can deliver mega projects, most notably PNG LNG," Mr Hession added.

According to Sport Rich List, among the top 10 LNG Producing countries are USA, Russia, Iran, Canada, China, Qatar, Norway, Saudi Arabia, Algeria and the Netherlands. "They are leading countries in the production of Natural Gas. These countries are working to find more resources," the newswire stated.

Meanwhile, about 9.6 trillion cubic feet of gas (tcf) is expected to be produced from a two train LNG plant of the current PNG LNG Project over a 30 year period while over 9.9 tcf is expected from the next two trains from the Elk-Antelope project. According to reports from industry players, the current gas reserves would make room for more trains exceeding the projected 5 trains.