Petromin for offshore gas processing plant

By BOSORINA ROBBY
PETROMIN PNG Holdings Ltd yesterday presented to its major stakeholders the concept of having an offshore processing plant designed to greatly reduce the time and money spent on onshore pipeline laying and other concerns.Managing director Joshua Kalinoe said the liquefied natural gas (LNG) floating production storage and offloading (FPSO) exercise would be the fastest means of commercialising the gas resources in PNG, especially for gas fields within the ocean’s proximity, with long-distance pipeline options to the onshore processing facilities.He said from the co-operative development agreement signed by Petromin and its international partners DSME South Korea and Hoegh LNG Norway on Tuesday, economic and technical feasibility studies would continue to provide a competitive option to gas owners in the Gulf of Papua, including the ELK/Antelope LNG project.Kalinoe said this would provide an alternative to gas owners and operators in the country to save time and money by having an offshore processing facility nearby, rather than through hundreds of kilometers of pipelines.The LNG FPSO technology will feature an offshore facility vessel that will be built by DSME, and will be able to store, process and prepare gas for export.The processing facility is projected to be capable of producing up to three million tonnes of LNG annually.Kalinoe said if everything went according to plan, the final investment decision should be made by Dec 31 to allow for the construction of the vessel to begin by next February and first cargo anticipated for late 2014.He said the technology also had the advantage of early monetisation of gas reserves when compared to conventional onshore LNG facilities and the training of many Papua New Guineans.He said the partnership with DMSE and Hoegh LNG would allow Petromin to fulfil its mandate as the national oil, gas and minerals company to join and deliver the first LNG FPSO facility in PNG.