🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

UPDATE 1-ExxonMobil says no indication of damage to Papua New Guinea gas pipeline

Published 28/02/2018, 04:08 pm
© Reuters.  UPDATE 1-ExxonMobil says no indication of damage to Papua New Guinea gas pipeline
TTEF
-
OSH
-
XOM
-
NG
-

* Papua LNG considered one of world's top performing facilities

* Exxon says so far no signs of damage to supply pipeline

* Facility's remote location makes inspection, repairs difficult (Adds company statement, details, graphic)

By Oleg Vukmanovic and Sonali Paul

SINGAPORE/MELBOURNE, Feb 28 (Reuters) - ExxonMobil Corp XOM.N said on Wednesday there was no indication so far that a powerful earthquake in Papua New Guinea this week has damaged the 700 km (435 mile) pipeline that delivers gas to its coastal liquefied natural gas (LNG) plant.

Whole villages were flattened and water sources spoiled by the earthquake early on Monday that killed at least 20 people, residents said, as rescuers struggle to reach the hardest-hit areas in Papua New Guinea's remote, mountainous highlands. 7.5 magnitude quake led Exxon to shut its $19 billion LNG facility, the country's biggest export earner, amid fears of damage to gas field infrastructure and the pipeline that carries gas to the coast. planned a full visual inspection of the pipeline route, while specialist engineers would need "a little bit time" to assess damage to the project, company officials said.

"We have had no indications that the PNG LNG pipeline has sustained damage and will be undertaking a full visual inspection of the pipeline right of way as part of our ongoing assessments," ExxonMobil's PNG spokeswoman said in an email to Reuters.

The quake's epicentre was located close to the gas fields that supply the project.

"Specialist engineers are being brought in to assess impact and this will likely take a little bit of time," said Frank Kretschmer, senior vice president of Exxon Mobil (NYSE:XOM) Asia Pacific's LNG Marketing division, speaking at an industry event in Singapore.

ExxonMobil shut the two LNG trains at the coastal plant following the quake, but these have not been damaged, Kretschmer said.

All employees and contractors are safe and Exxon is working closely with aid agencies, communities and partner Oil Search Ltd OSH.AX , he added.

"The airport cannot be used so we are having to use helicopters to fill the gaps," he said.

Buyers who have contracted regular supplies of Exxon's Papuan LNG said they expect the outage to last at least seven days. PNG LNG project is considered one of the world's best-performing LNG operations, having started exports in 2014 ahead of schedule, despite the challenge of drilling for gas and building a plant and pipeline in the remote jungle of PNG.

The liquefaction plant has been producing at around 20 percent above its rated capacity of 6.9 million tonnes a year.

Exxon said earlier this month that together with its partners, France's Total SA TOTF.PA and Australia's Oil Search Ltd OSH.AX , it plans to almost double the facility's export capacity to 16 million tonnes per year. GRAPHIC: Papua New Guinea quake IMG

http://tmsnrt.rs/2ow1YLR

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.