ExxonMobil is accelerating its plans for the P’nyang gas field in Papua New Guinea (PNG), moving the project forward years earlier than originally planned. The company is fast-tracking development to support its ambitious goal of expanding its LNG (liquefied natural gas) production to 40 million tons annually by 2030.
The P’nyang field, which contains 4.4 trillion cubic feet of gas, plays a crucial role in PNG’s LNG industry. Exxon is moving quickly with its plans, aiming to start initial work by mid-2025. The company is also advancing the project’s planning phase and setting up an office in PNG’s Western Province. Johanna Boothey, ExxonMobil PNG’s senior vice president for commercial development, stated at a recent conference in Sydney, “We expect to begin initial ground surveys soon.”
Exxon’s rapid pace is driven by the urgency of timing in LNG production. Delays at the Papua LNG export terminal, which is expected to produce 5.6 million tons per year, have raised concerns about gas supply shortages for PNG LNG, Exxon’s flagship project. The company is working to align the development of P’nyang with the expected start-up of Papua LNG in 2029. If there are further delays with Papua LNG, Exxon may push forward with P’nyang even faster to avoid any supply shortages.
Exxon’s strategy goes beyond logistics. The company is determined to strengthen its position as a leading LNG producer. Unlike European competitors like Shell and TotalEnergies, Exxon focuses on selling its own gas, rather than relying on third-party volumes. With operations in locations such as Mozambique, Qatar, and Texas, Exxon is building a global network of “advantaged growth projects” to meet the growing demand for LNG.
However, challenges remain. The final investment decision (FID) for P’nyang is not expected until 2029, and any issues with Papua LNG could affect the entire LNG industry in PNG. Exxon holds a 49% stake in the P’nyang project, with Santos and JX Nippon owning the remaining share. This makes the project a high-stakes investment in PNG’s energy future.
For Exxon, avoiding delays is crucial, and fast-tracking P’nyang is a key strategy to stay ahead. As PNG’s LNG industry develops, ExxonMobil is positioning itself for long-term success.
Related Topics: