Regional LNG: JGC, Hyundai E&C picked as EPC contractor candidate for PNG LNG project

By Romel S. Gurky

Japanese EPC contractor  JGC Holdings Corporation said it has been selected with Hyundai Engineering & Construction Co., Ltd. as the engineering, procurement and construction (EPC) contractor candidate for a major low-carbon LNG plant in Papua New Guinea.

The project is part of the Papua LNG development led by TotalEnergies, with partners including ExxonMobil, Santos Limited and ENEOS.

Under the plan, the JGC-Hyundai joint venture will build an LNG plant in Port Moresby with a total capacity of about 4 million tonnes per annum, comprising three processing trains of 1.33 million tonnes each.

The plant will process gas from the Elk-Antelope fields and is expected to become one of the country’s major LNG export facilities.

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JGC said the consortium was selected based on its track record in LNG construction, engineering capabilities, project execution plans, safety performance, pricing and schedule proposals.

The final EPC contract award and notice to proceed are expected after a final investment decision, targeted for 2026.

The LNG facility will adopt electric-driven compression technology, known as “E Drive,” which replaces conventional gas turbines and is expected to reduce carbon emissions during operations.

JGC previously worked on the PNG LNG Project, which began production in 2014 and produces more than 8 million tonnes of LNG annually.

With the addition of Papua LNG, the country’s total LNG production capacity is expected to exceed 10 million tonnes per year.

Editing by Alexander Ginting