Exxon seals deals for LNG project

IRVING, Texas (AP) — Exxon Mobil Corp. said it has finalized financing and sales agreements so it can begin developing a liquefied natural gas project in Papua New Guinea.

The company said the development positions it and its partners to meet growing energy demand in developing Asian countries.

The project includes gas production and processing facilities, onshore and offshore pipelines with capacity of 6.6 million tons per year.

Exxon, the world’s largest publicly traded oil company, said its affiliate, Esso Highlands Ltd., will begin work on the project now that the agreements are complete.

The initial phase is estimated to cost $15 billion and deliveries are to begin in 2014. Funding will come from co-venturers and market-rate loans.

The project is expected to produce more than nine trillion cubic feet of gas over its planned 30-year life.

Among its customers are CPC Corp., Taiwan; Osaka Gas Co. Ltd.; Tokyo Electric Power Co. Inc. and Unipec Asia Co. Ltd., which is a subsidiary of China Petroleum and Chemical Corp.

Exxon’s partners include Esso Highlands, Oil Search Ltd., Independent Public Business Corp. and others