An evening primed with positive energy was the recent hugely anticipated official TotalEnergies EP PNG Ltd led Papua LNG FEED Announcement, appropriately held at the iconic APEC Haus which set the stage for the unveiling of the new Papua LNG logo. Guests were greeted by traditional dancers from both Gulf and Central provinces as they arrived and moved through the APEC Haus.
The new Papua LNG logo signifies the unique historical connection shared by the Papua LNG project impacted provinces of Gulf and Central, through a trade voyage and system that spanned many thousand years.
A story that was enacted in a special drama on the evening.
The logo depicts the traditional voyage vessel (“lagatoi”) Sails built by the Motuan people for their food trade expeditions.
Really, a symbol of cultural tradition
The joint announcements by key representatives from the State, Development partners (TotalEnergies, Exxon, Santos, JX Nippon, Kumul Petroleum Holdings Ltd (KPHL)) and MRDC, marked an evening of re-assurance to the domestic and international community of the commitment by all stakeholders to the second LNG project for PNG.
The Prime Minister and respective MPs joined spirited TotalEnergies EP PNG Ltd representatives, in which some flew in from Singapore for the occasion.
Petroleum Minister (Hon Kerenga Kua) was pleased to mention progressive discussions on terms between the Developers & State in 4 key areas to unlock greater value:
- Participation in shipping
- Maximizing local content
- Increased provisioning of FOREX
- Ownership of pipeline infrastructure by the State & its entities
FEED expenditure in 2023 circa PGK500 million, which should support foreign currency availability.
Project resources:
- 1 billion barrels of oil
- 6 tcf of gas
Production (life span of 25 years):
- 6 billion metric tonnes of LNG + oil
- projected revenues for PNG circa PGK 75B, over the production life span
Other projects
- KPHL stranded gas fields entails another 6 tcf which could mean an additional 2-3 E-Trains for the country
- P’nyang agreement has been executed and awaiting subsequent construction after Papua LNG
- Clan vetting process to complete by 2023
Julien Pouget (Senior Vice President Asia Pacific for Exploration & Production & Renewables) briefed on Papua LNG as a fully-integrated project – upstream, pipeline & downstream processing to shipping, developing a world class asset with a key focus in capping carbon emissions.
Papua LNG will be the first project in the world to re-inject carbon dioxide back into the wells after gas extraction, thereby controlling carbon emissions.
Use of E-Trains (Electric Trains) – electricity generated from green energy to power the Train facilities.
Prime Minister Hon James Marape, remarked that the project is on track setting the stage for 4 years of Papua LNG construction, immediately dovetailed by another 4 years of the P’ynang project construction, and that the FEED phase will be completed in less than 12 months, compared to PNG LNG FEED phase spanning 16 months. As well as marketing project resources to potential markets and counterparts abroad.
Whilst this is no doubt exciting and welcome news to the PNG economy, the big question will linger on in terms of maximum reach of the Value and/or Benefit of such projects, and ensure improved governance and safeguards over ensuing years. The nation building blocks of Health? Education? Meaningful and sustainable occupations? Ordinary members of our community deserve these.
The anticipated strain on human resources, particularly in relevant skilled areas, is a contributing factor in phasing each developing project. There will no doubt be a massive impact on employment for the country, which will have a flow on effect to existing employers and employees – both positive and potentially negative. The competition for skilled workforce is already on foot domestically and internationally. This anticipated shift is no doubt calling for a new approach to talent management, one which doesn’t rely on hefty L&D budgets and large recruitment spends. Its also a revolutionary opportunity to build up PNG’s local workforce, your current workforce, with the technical and soft skills which will be needed as we progress into this new wave of economic development.
What plans do you have to future-proof your organisation with the potential activity on the horizon?
For more information on the Papua LNG project, visit their refreshed post-announcement website.