31 Jul 2012

PNG's massive liquified natural gas project on track

10:14 am on 31 July 2012

Papua New Guinea's massive liquified natural gas project is on track to go online in 2014, as drilling operations start in the country's Southern Highlands.

The Exxon Mobil subsidiary Esso Highlands Limited says drilling operations for the PNG LNG Project at the Hides natural gas field has started.

The company drilling manager, Jim McDermott, says the start of the drilling programme is a key step in meeting gold of first LNG deliveries in 2014.

The company is using a specially made Nabors Rig 702 to do the drill the first well, which it says is designed to withstand earthquakes.

A second rig to be used in the PNG LNG Project drilling program has arrived in PNG and is currently being transported to the Hides area.

The 16 billion US dollar LNG project is projected to double the country's GDP within 30 years.