Important Project Milestone with Key Asian LNG Buyer
PORT MORESBY, Papua New Guinea--(BUSINESS WIRE)--Tokyo Electric Power Company Limited (TEPCO) and Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation (NYSE:XOM) and operator of the Papua New Guinea Liquefied Natural Gas (PNG LNG) Project, today announced that TEPCO and the project participants have entered into a binding sales and purchase agreement for the long-term sale and purchase of LNG totalling approximately 1.8 million tonnes per annum.
The agreement is effective for a 20-year period.
“This agreement is the foundation of a new relationship bringing together a premier Japanese LNG customer and an important new LNG supplier. It will provide important and complementary benefits to all parties,” said Ron Billings, vice president, LNG, ExxonMobil Gas & Power Marketing Company. “This is yet another key milestone in the project’s schedule.”
TEPCO is the largest power utility company in Japan serving 28 million customers and is one of the world's largest LNG importers with 20 million tonnes of imports in 2008.
The PNG LNG Project is an integrated development which includes gas production and processing facilities, onshore pipelines and offshore pipelines and LNG plant facilities. Participating interests are ExxonMobil (through various affiliates, including Esso Highlands Limited as Operator) 41.5%, Oil Search 34.0%, Santos 17.7%, Nippon Oil 5.4%, Mineral Resources Development Company 1.2 %, and Petromin PNG Holdings Limited 0.2%. (Participation will change when the PNG State nominees join as equity participants at a later date).