Oil Search Limited
(ASX:OSH) has welcomed the first shipment of liquefied natural gas (LNG) from the ExxonMobil operated $US19 billion PNG LNG project.
The shipment has left Papua New Guinea carrying a cargo bound for Japan and sold on the spot market to Tokyo Electric Power Co. Inc. (TEPCO).
Oil Search’s Managing Director Peter Botten has described the milestone as a momentous occasion for the company, its co-venture partners and Papua New Guinea.
In its first full year of operation PNG LNG is expected to quadruple Oil Search’s production base and contribute more than $US1.3 billion annually to its operating cash flows.
The project is also expected to more than double Papua New Guinea’s Gross Domestic Product through enabling the country to be a major supplier of LNG to surrounding Asian markets.
Oil Search reported a net profit of $230 million in the 2013 calendar year.
