Cabinet approves sea floor mining in PNG
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It’s happening! LNG pipeline works underway

LNG Map
AN INTERNATIONAL CONSORTIUM is ready to bring PNG’s vast onshore petroleum resources to market, with the construction of an 850 km, large-diameter pipeline.

Construction activities are ramping up on the LNG Project. Pipe for the onshore gas pipeline has been arriving at the shore base at Kopi.

The project involves a processing facility and the integrated development of the Hides, Angore and Juha gas fields, as well as associated gas from the Kutubu, Agogo, Gobe and Moran fields.

The gas will be transported to the LNG plant near Port Moresby through 850 km of onshore and offshore large diameter pipeline.

The onshore pipeline and affiliated infrastructure will be built by French company Spiecapag. The onshore section will consist of a buried pipeline overland from the Hides gas plant to the Omati River landfall, a distance of 300 km.

Construction of the offshore pipeline will be undertaken by Italian company Saipem. The scope of work includes installation of a 407 km subsea pipeline from the Omati River landfall to Port Moresby.

Due to PNG’s extreme undulating terrain, an airport is being constructed to ensure materials are delivered to the site on time.

A joint venture between McConnell Dowell and Consolidated Contractors has been awarded the contract to procure and construct the Komo Airfield, 10 km southeast of the Hides Plant.

The runway will be 3.2 km long, which compares with the length of major international airports – Heathrow’s longest runway is 3.9 km.

Antonov AN-124 aircraft will bring in materials over a six-month period. In the long term, Dash-8 aircraft will be the most frequent users of the airport.

The LNG Project is expected to deliver its first LNG shipments by late 2013 or early 2014.

Source: Pipelines International & LNG World News

Comments

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Francis Hualupmomi

LNG attracts transtional crimes and terrorism. The LNG project is driven by Exxon Mobil which makes it more vulnerable to security risks.

The US geostrategic and economic theatre is a target of terrorist organisations. PNG lacks a security buffer system.

PNG must project strategic capability to manage new security challenges. PNG should bargain for strategic cooperation with the US and other partners such as China (if agreement is approved) and Japan.

Robin Lillicrapp

Exciting stuff, eh? The present turmoil in the Middle East is threatening the continuity of oil flows to USA and Europe etc.

Just last night, President Obama was trumpeting the promise of reducing dependence on overseas oil in the next little while. Pledging to find new, local, sources and open up more known reserves he was hedging against economic upheaval in the face of already mounting costs of oil at the pump.

With prices likely to reach the $150-$200 per barrel mark, it is likely future energy costs will be prodigious. It is highly unlikely that oil companies will be charitable and sell at discounted rates.

All this to say that, along with PNG's pipeline projects, Australia too is constructing similar projects so the pundits project a lucrative future for these oil supplies to demanding economies but quite likely at punitive prices to the end consumers. Hmm!

Arthur Williams

What were the criteria requiring a very expensive, high security risk 850km pipeline rather than putting the infrastructure development within the Gulf Province which was under developed? Puzzled.

Arthur Williams - Lavongai & Cardiff

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