TotalEnergies has announced a series of commercial and contractual milestones that move the Papua LNG project in Papua New Guinea closer to a final investment decision (FID), while reinforcing integration with the country’s existing liquefied natural gas (LNG) infrastructure.
The project will monetize gas reserves from the Elk and Antelope fields in Gulf Province through a development scheme that includes upstream gas gathering and processing facilities, a pipeline system connecting the fields to the coast, and LNG liquefaction infrastructure near Port Moresby. Papua LNG is designed to produce 5.6 MTPA of LNG for export to Asian markets.
A key milestone is the completion of the engineering, procurement, and construction (EPC) tendering process, with contract award recommendations now awaiting partner approval. TotalEnergies reported that project optimization efforts, including an alternative condensate handling scheme integrated with the neighboring PNG LNG project and the rebidding of major EPC packages, have reduced estimated capital costs by nearly US$4 billion since 2024, lowering total project capex to approximately US$14 billion.
The partners have also approved the transfer of operatorship to ExxonMobil, operator of the adjacent PNG LNG facility. The move is intended to maximize construction, logistics, infrastructure, and operational synergies between the two developments. Papua LNG’s gas treatment, transportation, and export systems are expected to benefit from greater integration with existing LNG assets already operating in the Port Moresby area.
In addition, the project has finalized amendments to its gas agreement with the Government of Papua New Guinea and established a joint venture to market 2.4 MTPA of LNG. A separate LNG offtake agreement will provide TotalEnergies access to 1.5 MTPA for its global trading portfolio.
Following the restructuring, ExxonMobil will hold a 34.1% operated interest in Papua LNG, alongside Santos (21%), TotalEnergies (20%), Kumul Petroleum Holdings, and MRDC (22.5%), and ENEOS Xplora (2.4%).
