ExxonMobil is shifting into high gear with its P’nyang gas field in Papua New Guinea (PNG), fast-tracking the project by “years sooner than previously envisaged”. This acceleration comes as the supermajor doubles down on its ambitious plans to expand its LNG portfolio to 40 million tons annually by 2030.
The P’nyang field, holding a staggering 4.4 trillion cubic feet of gas, is key to keeping PNG’s LNG industry humming. With groundwork starting as early as April-June 2025, Exxon is advancing its concept select phase and preparing to establish a project office in PNG’s Western Province. “We expect to undertake initial ground surveys in the coming weeks,” said Johanna Boothey, ExxonMobil PNG’s senior VP for commercial development, at a recent conference in Sydney.
Why the rush? Timing is everything in LNG, and delays at the planned 5.6-million-ton-per-year Papua LNG export terminal have raised concerns about feedstock shortages for PNG LNG, Exxon’s flagship joint venture. Synchronizing P’nyang’s development with Papua LNG’s start-up—currently pegged for 2029—is seen as critical. But if Papua LNG falters, Exxon may push P’nyang through even faster to avoid supply gaps.
This isn’t just about logistics; it’s about Exxon cementing its position as the LNG kingpin. Unlike European rivals Shell and TotalEnergies, Exxon focuses on selling its own gas, not third-party volumes. With projects spanning the globe—from Mozambique to Qatar and Texas—Exxon is building a fortress of “advantaged growth projects” to meet skyrocketing LNG demand.
But challenges loom. P’nyang’s final investment decision (FID) won’t happen until 2029, and any hiccup with Papua LNG could ripple through PNG’s entire LNG ecosystem. Exxon holds a commanding 49% stake in P’nyang, with Santos and JX Nippon sharing the rest, making this a high-stakes bet on PNG’s energy future.
For Exxon, delays are the enemy, and fast-tracking P’nyang is the best defense. As PNG’s LNG story unfolds, ExxonMobil is playing to win.
Source: By Julianne Geiger from Oilprice.com