Santos said the Papua LNG project remains on schedule for a final investment decision in the fourth quarter of 2026.
Key points for this project:
- FID targeted for late 2026: Santos said Papua LNG remains on track for a final investment decision in the fourth quarter after securing key regulatory approvals.
- Major LNG capacity planned: The project would include three liquefaction trains capable of producing about 4 million metric tons of LNG annually.
- Contracting opportunities ahead: Approval could create significant work for EPC firms, module fabricators, equipment suppliers and gas-processing contractors.
The project has secured key regulatory approvals, and a government-led development forum began in July. The forum brings together government officials, landowners, project partners and other stakeholders to finalize agreements needed before the development can move forward.
TotalEnergies operates Papua LNG with a 37% interest. ExxonMobil holds 37%, Santos owns 22% and JX Nippon holds 2%.
The project would process natural gas from the Elk-Antelope fields in Papua New Guinea. Plans include three liquefaction trains with a combined capacity of about 4 million metric tons of LNG per year.
The facilities would be built near ExxonMobil’s existing PNG LNG plant outside Port Moresby. The location would allow the partners to use existing infrastructure and limit the need for additional development.
Project could create contracting opportunities
A positive investment decision would move Papua LNG closer to construction and create opportunities for companies across the LNG supply chain.
The development could generate work for engineering, procurement and construction contractors, module fabricators, equipment manufacturers, gas-processing companies and construction service providers. The project is expected to require piping, compression equipment, electrical systems, automation technology and other equipment used to build and operate LNG facilities.
JGC Corp. and Hyundai Engineering & Construction have been selected as candidates for the project’s EPC contract. A final contract award is expected after the partners approve the development.
Papua New Guinea’s government has emphasized the importance of hiring local workers and working with domestic suppliers. Workforce training and local business participation are expected to remain priorities as the project advances.
Santos advances other Papua New Guinea projects
Santos is also investing in projects intended to increase production from its existing operations in Papua New Guinea.
The company approved an oil infill drilling campaign at PNG LNG, with drilling scheduled to begin in the fourth quarter of 2026. The wells could later be converted to natural gas production as additional infrastructure becomes available.
Santos also approved the Agogo Production Facility tie-in project in May. The project is expected to deliver first gas in the second quarter of 2028.
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ExxonMobil’s existing PNG LNG plant maintained reliability above 98% during the second quarter. The facility operated at an annualized production rate of 8.7 million metric tons.
If approved, Papua LNG would expand Papua New Guinea’s role in the global LNG market and create new opportunities for engineering, construction, equipment and technology companies.
