TotalEnergies' Papua LNG Project Nears FID After Key Milestones Reached

TotalEnergies has reached several key milestones in its Papua LNG project, moving it closer to a final investment decision (FID). The project aims to monetize gas reserves from the Elk and Antelope fields in Papua New Guinea by developing a scheme that includes upstream gas gathering and processing facilities, a pipeline system connecting the fields to the coast, and LNG liquefaction infrastructure near Port Moresby.

The Papua LNG project is designed to produce 5.6 million tonnes per annum (MTPA) of LNG for export to Asian markets. TotalEnergies reported that it has completed the engineering, procurement, and construction (EPC) tendering process, with contract award recommendations now awaiting partner approval.

Project optimization efforts have reduced estimated capital costs by nearly $4 billion since 2024, lowering total project capex to approximately $14 billion. The partners have also approved the transfer of operatorship to ExxonMobil, operator of the adjacent PNG LNG facility, in order to maximize construction, logistics, infrastructure, and operational synergies between the two developments.