Papua New Guinea gas project signs supply deal with PetroChina

“We are delighted to have entered into a SPA (sale and purchase agreement) with PetroChina, which has been an active buyer of spot LNG cargoes from PNG LNG,” said Oil Search Managing Director Peter Botten. (Representational Image)

The ExxonMobil-operated Papua New Guinea gas project has agreed a deal to supply liquified natural gas (LNG) to PetroChina Co Ltd, Australia’s Oil Search Ltd, a partner in the project, said on Friday. The three-year deal is for the supply of about 0.45 million tonnes of LNG a year to PetroChina International (Hong Kong) Corp Ltd (PCI), Oil Search said in a statement.

“We are delighted to have entered into a SPA (sale and purchase agreement) with PetroChina, which has been an active buyer of spot LNG cargoes from PNG LNG,” said Oil Search Managing Director Peter Botten.

“The first sale under the new agreement is expected to take place this week.” ExxonMobil Corp holds a 33.2 percent stake in PNG LNG, while Oil Search has a 29 percent interest. Two PNG government-linked entities and Australia’s Santos Ltd hold smaller stakes.

An earthquake in February led to a shutdown of the plant, which only resumed production in mid-April.