Gas
ExxonMobil assumes operatorship of Papua LNG project
ExxonMobil has formally taken over operations for the Papua LNG project, aiming to align infrastructure with the existing PNG LNG development.
Key points
- ExxonMobil assumed operatorship following agreements reached with project partners in September 2026.
- The final investment decision for Papua LNG remains pending, with participants targeting an agreement before the end of 2026.
- Design modifications and optimization measures have reduced the project budget to approximately USD 14 billion.
What happened
ExxonMobil has formally assumed operational responsibility for the Papua LNG project, according to reporting by Inspenet and NBC. The transition follows a corporate announcement on October 15 and endorsement from the Papua New Guinea Chamber of Resources and Energy (PNGCORE) on October 17. The handover implements an agreement reached in September, positioning ExxonMobil PNG Antelope Limited to manage coordination with partners, authorities and local communities.
Why it matters
The operational change allows for technical coordination between Papua LNG and the established PNG LNG project, which has been in production since 2014 and has exported more than 1,330 cargoes. According to TotalEnergies, integration measures and competitive tendering have reduced the project's budget by nearly USD 4 billion since 2024, bringing estimated costs to approximately USD 14 billion. Meanwhile, Santos is increasing its equity stake in Papua LNG to 21 percent through an acquisition of an additional 3.3 percent share.
What comes next
Project participants maintain their objective to reach a final investment decision before the end of 2026. The formal transfer of operatorship does not constitute construction authorization or signal the final closure of all equity transactions. Future progress will depend on corporate investment approvals, finalising contracts and executing schedules to advance the development toward construction while maintaining safety and local commitments.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
0.0% of electricity in Guinea came from gas in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
