PNG LNG on track for 2014

Exxon Mobil, Santos, Oil Search project to deliver gas in second half of next year.

Exxon Mobil subsidiary Esso Highlands Ltd has confirmed that its liquefied natural gas project in Papua New Guinea is more than 90 per cent complete.

In a statement to the Australian Securities Exchange, the group said it is on schedule for first delivery of liquefied natural gas in the second half of 2014.

The commissioning phase has begun, which includes sending gas from Oil Search Ltd's Kutubu central processing facility to the LNG plant to provide power.

Santos (STO) has a 13.5% interest in the project and said it continues to make strong progress on the venture (see Santos' cash pipeline). 

The estimated cost of the project remains at $US19 billion ($21.33 billion) excluding Port Moresby administration facilities and shipping, as previously forecast. 

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