PARIS, April 8 (Reuters) - French oil and gas giant
TotalEnergies on Monday said a planned new liquefied
natural gas (LNG) project in Papua New Guinea would require
'more work' before a final investment decision decision could be
reached.
TotalEnergies said its Chief Executive Patrick Pouyanne
recently told Papua New Guinea Prime Minister James Marape the
project would need to work with third-party contractors to reach
commercially viable engineering, procurement and construction
contracts.
"In that view, the project will review the structure of
some packages and open the competition to an enlarged panel of
Asian contractors. As a consequence, FID (final investment
decision) of Papua LNG project is now expected in 2025," the
company said.
The head of local producer Kumul Petroleum earlier said the
final investment decision was due in 2024.
Marape and Pouyanne agreed the delay would not affect the
early works planned in Papua New Guinea in 2024.
The 5.4 million tonnes per year Papua LNG is the second
major gas project in the impoverished Pacific country and is a
joint venture between TotalEnergies, Exxon Mobil ( XOM ) and
Santos along state-owned Kumul Petroleum.
The resource rich but impoverished South Pacific nation
is looking to boost foreign investment and trade amid a jostle
for influence in the region between the United States and China.
Environmental groups have said the LNG project is
incompatible
with keeping global warming below 1.5 C because of the
emissions produced when the gas is burnt by customers.