Boston, MA 04/09/2014 (wallstreetpr) – Exxon Mobil Corporation (NYSE:XOM) announced that its joint gas project venture in PNG will commence operations within the next few months. The company said that the project is near completion ahead of schedule.
Shared stake
The U.S. energy giant tied-up with PNG government, Australian producers Oil Search and Santos to develop a liquefied natural gas facility. The project is owned 33 percent by Exxon, 17 percent by PNG government, 29 percent Oil Search and Santos controls around 13.5 percent.
According to Exxon’s project executive Decie Autin, more than 95 percent of the LNG project is already complete and the remaining work will be completed ahead of the schedule and on budget. If things turn out as expected concerning the completion and commissioning of the project, customers will be able to start enjoying gas delivery from the plant by mid-2014.
Completion of the PNG highland gas project on schedule and budget is a rare success. The project posed significant engineering and construction challenges given the weather condition and the terrain. Perhaps this explains why Ms Autin observed that they have been successful where many others may not have succeeded.
Meeting demand for LNG
The demand for LNG is high and the PNG project is expected to improve supply in the country and beyond. Many U.S. energy companies are looking to new markets for their oil and gas products in Asian and European markets where prices are stable and demand is high compared to domestic prices to demand. Moreover, demand for LPG and LNG is projected to remain in the global markets. It seems that in addition to making LNG and LPG exports to these world markets, Exxon Mobil Corporation (NYSE:XOM) is keen on entering into tie-up arrangements to bring its production facilities closer to the markets, in which case it is able to reduce overhead costs.
Exxon Mobil Corporation (NYSE:XOM)’s earnings fell 1.8 percent in the fourth quarter.
