TotalEnergies advances its gas project in Papua

TotalEnergies is embarking on the construction of a major gas plant in Papua New Guinea, despite delays caused by the pandemic and the renegotiation of the contract by the local government.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

French energy group TotalEnergies announced on March 7, 2023 the launch of detailed engineering studies for the construction of a major gas plant in Papua New Guinea. This liquefied natural gas (LNG) project, named “Papua LNG”, had been initiated in 2014 and was originally scheduled for a final investment decision in 2020. However, the health crisis and the renegotiation of the contract by the local government caused delays in the project.

A large-scale project

The Papua LNG project consists of eleven onshore wells, located in a difficult to access forest area, which will be connected by pipeline to the liquefaction plant, from where the LNG can be exported by ship to any destination. The project represents an investment of approximately $10 billion for a production capacity of 6 million tons per year. TotalEnergies holds a 40.1% interest in this project, while ExxonMobil holds 37.1% and Santos 22.8%. The national company of Papua New Guinea will also have an input into the final investment decision.

Commitments to the environment

Julien Pouget, TotalEnergies’ Director of Exploration-Production and Renewable Energy for Asia-Pacific, emphasized the Group’s commitment to maximizing synergies and reducing costs by building the liquefaction and power infrastructure within the existing PNG LNG plant operated by ExxonMobil.

The TotalEnergies group also insisted on its commitment to carry out actions for local communities in agreement with “independent experts”, as well as to reforest very early in the construction process to minimize environmental impacts. In addition, the CO2 produced during extraction will be immediately reinjected into the gas fields, a “first” for an LNG project according to the French group.

A fast growing market

The Asian market is particularly interested in this project, which will make it possible to replace coal with natural gas, which emits less CO2. The director of TotalEnergies underlines the importance of the market in China, Japan and South Korea, and specifies that 5% of the production will be destined for the domestic market of Papua New Guinea.

This project has become a priority for TotalEnergies after its project in Mozambique was suspended in April 2021 following a jihadist attack. According to the Minister of Petroleum and Energy of Papua, Kerenga Kua, the Papua LNG project will attract other companies to invest and thus contribute to the development of the local economy.

The final investment decision is expected in late 2023 or early 2024.

VoltaGrid partners with Oracle to deploy modular gas-powered infrastructure designed to stabilise energy use in artificial intelligence data centres while creating hundreds of jobs in Texas.
GTT, Bloom Energy and Ponant Explorations Group launch a joint project to integrate LNG-powered fuel cells and a CO₂ capture system on a cruise ship scheduled for 2030.
Storengy has launched its 2025/2026 campaign to sell gas storage capacity over four years, targeting the commercialisation of nearly 100 TWh by 2030, with over 27 TWh available starting in 2026-27.
The US government has withdrawn its proposal to suspend liquefied natural gas export licences for failure to comply with maritime requirements, while maintaining a phased implementation schedule.
Soaring electricity demand in Batam, driven by new data centres, leads INNIO and MPower Daya Energia to secure 80 MW and launch a five-year maintenance programme.
Tamboran has completed a three-well drilling campaign in the Beetaloo Sub-basin, with 12,000 metres of horizontal sections prepared for stimulation and maintenance ahead of the commercial phase.
Valeura Energy partners with Transatlantic Petroleum to restart gas exploration in the Thrace basin, with testing and drilling planned this quarter in deep formations.
Calpine Corporation has finalised a public funding agreement to accelerate the construction of a peaking power plant in Freestone County, strengthening Texas’s grid response capacity during peak demand periods.
Naftogaz urges the European Union to use Ukraine’s gas storage capacity as part of a strategic reserve system, while calling for the end of storage filling obligations after 2027.
Spanish gas infrastructure operator Enagás is in advanced talks to acquire the 32% stake held by Singapore’s sovereign wealth fund GIC in Terega, valued at around €600mn ($633mn), according to sources familiar with the matter.
BP has awarded Valaris a $140mn drilling contract for a Mediterranean offshore campaign aimed at reinforcing Egypt’s declining gas output since 2021.
Egypt’s petroleum ministry will launch 480 exploration wells by 2030 with investments exceeding $5.7bn, aiming to revive production and reduce reliance on imports.
Faced with declining domestic consumption, Japanese liquefied natural gas (LNG) importers are ramping up commercial optimisation strategies and favouring shorter contracts to protect profitability.
European inventories curbed price declines as liquefied natural gas (LNG) supply expands and demand stays weak. Cargo arbitrage favours Europe, but winter will determine the equilibrium level. —
Sonatrach and Midad Energy North Africa signed a production-sharing hydrocarbon contract in the Illizi South perimeter, involving a total investment estimated at $5.4bn for exploration and exploitation of the site.
Kuwait Petroleum Corporation annonce une découverte majeure dans la zone offshore avec le champ de Jazah, soutenant les efforts publics d’investissement dans les infrastructures énergétiques nationales.
Rockpoint Gas Storage finalised its initial public offering in Canada with an upsized offer of 32 million shares for gross proceeds of C$704mn ($512mn), marking a new step in Brookfield’s partial divestment strategy.
Africa Energy postpones submission of its environmental impact assessment for Block 11B/12B following a recent court ruling affecting offshore exploration authorisations in South Africa.
The European Union’s gas system shows reinforced resilience for winter 2025-2026, even without Russian imports, according to the latest forecast by European gas transmission network operators.
US LNG producer Venture Global saw its market value drop sharply after an arbitral ruling in favour of BP reignited concerns over ongoing contractual disputes tied to the Calcasieu Pass project.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.