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UPDATE 1-ExxonMobil expects to deliver 7.9 mln tonnes from PNG LNG this year

Published 05/12/2016, 12:40 pm
Updated 05/12/2016, 12:50 pm
UPDATE 1-ExxonMobil expects to deliver 7.9 mln tonnes from PNG LNG this year

* ExxonMobil sees PNG LNG producing at 16 pct above nameplate

* Total sees acid gas as challenge for rival Papua LNG (Adds Total comments, background)

SYDNEY, Dec 5 (Reuters) - ExxonMobil XOM.N expects to deliver 7.9 million tonnes of liquefied natural gas from Papua New Guinea this year, around 14 percent above nameplate capacity of its PNG LNG plant, the company's PNG head said on Monday.

The PNG LNG plant, operated by its biggest owner ExxonMobil, can produce at more than 8 million tonnes a year or 16 percent above original design specifications, ExxonMobil's PNG managing director Andrew Barry said at a conference in Sydney.

"The benefits of the increased production are wide ranging and include additional revenues for the government of Papua New Guinea, landowners and provincial governments," Barry said.

Rival Total SA TOTF.PA , which plans to develop the Elk-Antelope gas fields in the country, said it is spending a lot of time working out how to deal with acid gas - carbon dioxide and hydrogen sulfide - in its fields, building ties with local communities, and looking for ways to cut costs before it goes ahead with its Papua LNG project.

"For everything that we need to do in Papua New Guinea, driving down the costs will be important," Total's PNG exploration and production managing director Philippe Blanchard said at the same conference.

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