JGC and Hyundai Engineering & Construction have secured a downstream front-end engineering design (FEED) estimation contract from ExxonMobil for the Papua LNG project in Papua New Guinea.

The FEED and engineering, procurement, and construction (EPC) estimation contract covers the downstream liquified natural gas (LNG) facilities of the Papua LNG project.

Planned to be built near the existing processing facilities of the $19bn PNG LNG project, located 20km north-west of Port Moresby, the Papua LNG project will have an LNG liquefaction capacity of around four million tonnes per year (Mtpa).

The Papua LNG facility, which also involves the use of 2Mtpa of liquefaction capacity in the existing trains of PNG LNG, will source natural gas from the Elk Antelope gas field.

The LNG facilities will feature an E-Drive design, where electric motors will replace traditional gas turbines to drive the natural gas compressors.

This will help in reducing carbon emissions during operations, JGC said.

In a press statement, JGC said: “The JGC Group has been responsible for the construction of LNG facilities accounting for more than 30% of world LNG production and is currently executing three projects: a large-scale LNG project in Canada, an FLNG project in Mozambique, and an FLNG project in Malaysia.”

Presently, TotalEnergies holds a 40.1% operatorship stake in the Papua LNG project while ExxonMobil and Santos own 37.1% and 22.8% stakes, respectively.

Last year, TotalEnergies awarded a FEED contract for the upstream production facilities of the Papua LNG project to Clough.

Clough and Technip Energies will identify and address the specific challenges related to the project, as well as lay foundations for its execution.