png lng project

From an EWC perspective, Interoil’s conference call (19 March, 2012) contained four important issues: Firstly, EWC remains an integral part of this LNG project. Secondly, it appears that some major equipment of EWC’s modular lng plant is ready for shipment, thirdly, that the PNG Government seems close to approving this project and fourthly, that it is most likely for FID date to be extended past end of March 2012.
Below are some paragraphs from this conference which refer to these issues:

The PNG constitutional confusion did slow the process down over the last few months, but we saw the paralysis free up and the government sectors are now focusing on the Gulf LNG project. The prime minister reconfirmed his FID goal for the Gulf LNG project and the PNG government has seen a number of interested parties over at the past 90 days, including the positive comments over the Korean and Japanese consortium……….

As earlier stated, InterOil is steadily completing LNG development in Core components to reduce contractor and LNG partner risks, whether real or perceived. Extensions past the March 31 timeline for both EWC and Mitsui are being processed currently. EWC has made significant progress on the LNG side with complete construction of the LNG coal boxes [read cold boxes SHU] this quarter, with expected delivery or ship-out date from the US the end of this month or early next quarter.

This process has dispelled any processing or completion matters on proven technology. And it might be noted that [Chart] was a manufacturer of the Equatorial New Guinea Marathon’s 4 million ton coal [read cold boxes, SHU] boxes for their LNG plant and is the targeted manufacturer for ConocoPhillips in Queensland, Australia……..
Henry Aldorf – InterOil Corporation – President, Pacific LNG
“The government is very well set on getting the Gulf project going.They think it’s a very important thing for the development of Papua New Guinea. In fact, the Prime Minister today, I think it was today, was visiting Kerema and we — I haven’t seen what he stated there. But before he was there — I talked to him last week and he said this project has to go.

This is the poorest province in Papa New Guinea, has always the stepchild of everything, and this is the first time where they can really develop the area so the government is strongly behind it. To develop it we have some minor points we have two solve with them. I will not go into those details because they are confidential between us and the government, but I will say we are getting pretty close to an agreement.”

Phil Mulacek – InterOil Corporation – CEO
“Thank you. There is a couple of questions — people worried about the risks in the election. We have never seen that that is a deterrent. In fact, after the writs were issued, we got our NEC project agreement executed when we originally did the refinery. So just want to put that one to bed that it’s not a material on it. There was mainly the constitutional paralysis, as I mentioned, and that seems to have cleared itself in the last a little less than 30 days with renewed focus to get this project completed within the various government participants. They are also in the pre-election politic modes when all of that just adds to a little bit more timing, but it is key for the government, absolutely essential for the Gulf and regional members to get this project to FID, as well as the Prime Minister.”


Together with the progress concerning Sengkang lng project and the lng hub at Pagbilao it becomes ever more evident that, as Mont pointed out, the "ducks are lining up very nicely indeed".