State company exports first LNG shipment

An historical moment, State owned Petroleum company exports its first LNG shipment, bound for China.

KPHL Managing Director Wapu Sonk said  this is the access volume from its shareholding in the PNG LNG Project.

"Today marks an important milestone for our company, it is the first time for Kumul Petroleum to market our equity share of LNG production from the PNG LNG Project, that is above the long term sales purchase agreement volumes."

KPHL holds 16.77 percent equity in the country's first LNG Project, operated by ExxonMobil.

Mr Sonk said "Kumul  Petroleum share in the LNG Project entitles us to sell approximately  14 cargoes over the next 4 years.

KPHL' s first customer is PetroChina, a subsidiary of China National Petroleum Corporation, one of the largest State-owned enterprises in China.

Managing director Li Shaolin said, "we surely will be here for a long time," making reference to be a long-term buyer.

Deputy Prime Minister John Rosso, Petroleum Minister Jimmy Maladina and State Enterprise Minister William Duma turned up at Caution Bay, to witness the loading of LNG shipment.

Mr Duma, in his second trip to the LNG site, located few kilometers outside of Port Moresby was thankful to ExxonMobil for allowing KPHL to solely find buyers for its access to LNG.

The deal is to sell 144, 000 metric tons of LNG to PetroChina International after a tender process was held in February.