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Media Releases, 01 April 2015

ExxonMobil signs power sale agreement with PNG Power

  • PNG LNG project to supply up to 25 megawatts of electricity for local use
  • Long-term gas supplies for a new state-owned gas-fired power generation unit

PORT MORESBY, Papua New Guinea – ExxonMobil PNG Limited, operator of the PNG LNG project, has executed an agreement for the sale of electricity to PNG Power.

Under the agreement, PNG LNG will supply up to 25 megawatts of electricity to PNG Power, which will, in turn, build the necessary infrastructure to the LNG plant in order for supply to commence.

The agreement fulfills one of the key commitments made under a memorandum of understanding signed by ExxonMobil and the government of Papua New Guinea in January 2015 to provide domestic gas for power generation for Port Moresby.

“With the signing of this agreement, we are continuing to demonstrate our commitment to the government and people of Papua New Guinea by contributing to the current power generation needs of Port Moresby,” said Andrew Barry, ExxonMobil PNG managing director.

It is expected the work to connect supply from the LNG plant will be completed in time for the Pacific Games, subject to all parties fulfilling their commitments. In addition, the memorandum of understanding provides for the supply of long-term gas sales to a new state-owned gas-fired power generation unit to be built near the LNG plant.