PNG

PNG

Tuesday, December 21, 2010

Daewoo Shipbuilding Unit Joins $3B Papua New Guinea LNG Project-Source

SEOUL (Dow Jones)--South Korea's Daewoo Shipbuilding & Marine Engineering Co.'s (042660.SE) will build an LNG floating, processing, storage and offloading facility for $2.1 billion in a Papua New Guinean project worth about $3 billion, joined by its energy-exploring subsidiary and two companies, a person with direct knowledge of the matter said early Monday.

"Papua New Guinea, as an island nation with future offshore potentials, is introducing the LNG-FPSO technology for the first time to develop and commercialize gas reserves in the country," the person told Dow Jones Newswires by telephone.

Daewoo Shipbuilding & Marine Engineering Energy & Resource, or DSME E&R, will operate the LNG FPSO together with Papua New Guinea's state-run oil, gas and minerals company Petromin PNG Holdings and Norway's Hoegh LNG after its parent Daewoo Shipbuilding builds the floating LNG-production facility, he said.
"The offshore plant will have a production capacity of up to 3 million metric tons a year of LNG, which is equal to 15% of South Korea's annual gas demand," said the official.

He said more details about the project will be available in a joint statement to be released by the three "partners" on Monday.