Chiyoda awarded LNG-for-power project work in Papua New Guinea

Tuesday, 12 January 2021
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LNG will be loaded and afterwards offloaded to small-scale cargo vessels and redistributed in PNG

 

LNG News Editor

Papua New Guinea is moving forward on a small-scale liquefied natural gas venture that will boost the Oceania nation's electricity supply security.

Chiyoda Corp., one of the leading global LNG engineering companies, has been awarded the design development and engineering contract for a new Floating, Storage and Regasification and Power Generation (FSRP) project.

The Chiyoda-led project is progressing even as LNG exporter PNG still has a large-scale expansion of its production volumes pending for approval.

Important

Chiyoda said the contract came from the PNG company Kumul Petroleum Holdings Ltd.

“This project is an important step towards meeting the demand and supply requirement set out in the PNG 2030 Strategic Plan, which has set goals of connecting 70 percent of the PNG population to secure electricity by 2030,” said Yokohama-based Chiyoda,

“It will also provide PNG’s growing heavy industries with much needed environmentally cleaner and sustainable fuel options for their additional power generation requirements,” added Chiyoda.

The new FSRP facility will have the capacity to generate 75 megawatts of power to be exported to the local transmission grid, in addition to being able to load and store 140,000 cubic metres of LNG which can be offloaded to small-scale bulk cargo vessels and redistributed to smaller local power generation locations.

“The method will enable the regasification and transport of gas via pipeline for local heavy industrial power generation,” explained Chiyoda.

The LNG-for-power project will be located on the northern coast of PNG, close to the city of Lae, the second-largest in the Oceania nation after the capital Port Moresby.

“The venture will bring much-needed power generation to the area which contains some of the country’s key resources projects,” stated the Japanese company.

Chiyoda said that based on its experience in PNG and its expertise of FSRP facilities, the company would provide Kumul with a wealth of engineering expertise for the first of the contracts.

The Chiyoda-led partnership includes Moss Maritime of Norway and Japanese shipping company Nippon Yusen Kaisha (NYK Line).

“Chiyoda positions PNG as one of its priority countries for its business field and will contribute to the realization of PNG’s 2030 Strategic Plan,” it added.

Chiyoda is an experienced LNG contractor with current and recent work including the US Cameron LNG plant in Louisiana, Golden Pass in Texas and the Tangguh LNG expansion in Indonesia.

The PNG government is still contemplating the future schedule and path for its LNG expansion at the existing liquefaction plant, located northwest of Port Moresby and operated by US major ExxonMobil.

The two existing LNG Trains at the PNG plant have a nameplate capacity of 6.9 MTPA, though have consistently produced more and will be the site of any future expansion.

Three Trains

Three new liquefaction Trains are proposed in the delayed full expansion plan using feed-gas owned by a variety of international companies including ExxonMobil, France’s ‘s Total and Australian-listed companies Oil Search and Santos.

The five Trains when operational would have capacity of nearly 20 MTPA and would give PNG a more substantial role as a regional LNG producer.

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