ExxonMobil Corp. said Tuesday it has finalized an agreement to sell gas from its liquefied natural gas project in Papua New Guinea to Taiwan's CPC Corp. The deal, which follows on from a previously announced preliminary agreement, will see the PNG LNG project supply CPC with about 1.2 million metric tons of gas a year for 20 years.
"This important agreement with CPC will deliver a reliable supply of cleaner- burning natural gas to meet Taiwan's growing energy demand and begin a new and lasting relationship between Taiwan's largest energy importer and PNG's first LNG project," ExxonMobil Gas and Power Marketing's vice president for LNG Ron Billings said in a statement. Billing said all of the PNG LNG project's production capacity has now been committed on a long-term basis and the project partners are looking to finalize financing arrangements with lenders in the first quarter of 2010.
ExxonMobil is operator of the project and has a 33.2% stake alongside Oil Search Ltd. with 29%, the PNG Government with 16.6%, Santos Ltd. with 13.5%, Nippon Oil Corp. with 4.7% and local landowners with 2.8%.