The first cargo of liquified natural gas from the massive $20 billion Papua Guinea LNG project will soon leave for Japan ahead of schedule
Gas producer Santos says the first cargo of liquefied natural gas (LNG) from the $US19 billion ($A20.56 billion) Papua Guinea LNG project will soon leave for Japan.
LNG production has started early on the large-scale project in which Australian companies Oil Search and Santos are partners alongside project operator Exxon Mobil.
“The first export cargo is being loaded now and will soon depart PNG bound for Japan,” Santos chairman Ken Borda told the company’s annual general meeting in Adelaide on Friday.
Recent exploration activities in the PNG highlands had also been encouraging, he said.
In addition the company will this year explore the deep water Hides offshore gas field in PNG.
Chief executive David Knox said despite severe challenges with terrain and operating conditions, the PNG LNG project had been delivered ahead of schedule.
As a result Santos would quadruple its LNG production in the short-term and set itself up for 30 years of involvement in PNG.
Mr Knox said managing costs was a key priority for the company after capital expenditure peaked in 2013 due to construction of the PNG LNG and Gladstone LNG projects.
He said GLNG in Queensland was now 80 per cent complete and on track and on budget to deliver first gas in 2015.
At 1235 AEST shares in the company were 2.5 centS, or 0.2 per cent, higher at $14.31.