ExxonMobil PNG Limited, operator of the PNG LNG Project, and the government of Papua New Guinea (PNG) have reached an agreement to supply up to 20 million cubic feet a day (MMcf/d) of domestic natural gas for 20 years to support government plans to improve the capacity and reliability of the country’s power supply.

The agreement is in addition to an existing gas commitment for Hides domestic power generation. “This agreement enables a reliable long-term supply of natural gas to support Port Moresby’s urgent power generation needs,” said Peter Graham, ExxonMobil PNG managing director.

Under a memorandum of understanding, a portion of the natural gas supply allocated for domestic use will enable PNG LNG to provide up to 25 megawatts of electrical power, or about 20 percent of Port Moresby’s current generation capacity, for an interim period while the government addresses long-term power generation options.

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