Santos, alongside project partners TotalEnergies and ExxonMobil, is gearing up for a critical decision on the $15 billion Papua LNG project by late 2025. This ambitious undertaking aims to harness the Elk-Antelope gas fields in Papua New Guinea’s Gulf Province, potentially solidifying the nation’s status as a major player in the global energy market. With a proposed liquefaction capacity of up to six million tonnes of LNG annually, the project promises transformative economic and energy benefits for Papua New Guinea (PNG).
The timeline reflects a deliberate approach, with the focus currently on front-end engineering and design (FEED) studies to ensure project feasibility. According to Santos CEO Kevin Gallagher, the decision-making process prioritises economic viability and community engagement. The project is expected to bring substantial benefits to PNG, including employment opportunities, increased government revenues, and enhanced energy security.
Recent milestones include the conclusion of key agreements with the PNG government and landowner groups, ensuring resource-sharing arrangements are equitable and inclusive. These agreements were critical for moving the project forward, as they address long-standing concerns about resource ownership and distribution of benefits. Gallagher noted that maintaining transparent and collaborative relationships with local communities remains central to the project’s success.
In line with global sustainability trends, the Papua LNG project partners are also exploring renewable energy integration into the production process. Options under consideration include utilising solar and hydroelectric power to reduce the project’s carbon footprint. These efforts align with the broader sustainability goals of the participating companies and demonstrate PNG’s commitment to balancing economic growth with environmental stewardship.
If the final investment decision (FID) is approved as planned, construction is expected to commence in early 2026, with the first LNG production projected for late 2027 or early 2028. The Papua LNG project is viewed as a cornerstone of PNG’s broader economic strategy, leveraging its vast natural gas reserves to attract foreign investment and secure its place in the competitive LNG market.
By fostering partnerships with global energy giants and aligning with international best practices, PNG aims to unlock long-term economic growth while addressing global demand for cleaner energy sources. This project not only strengthens the nation’s energy infrastructure but also underscores its potential to become a key energy exporter in the Asia-Pacific region.
