Shares in London-based Rift Oil shot up six percent on Wednesday despite the company learning that a Papua New Guinea pipeline study put estimated construction costs at between $700 million and $770 million for pipe, plant and logistics.

Partner Flex LNG is staning by with a floating liquefaction plant, the first of its kind in the world, after ordering four such units with Samsung Heavy Industries in Korea.

Now production and export of at least 300 million standard cubic feet per day from Rift’s Douglas and Puk Puk discoveries looks tantalizingly close.

A 20-inch pipeline is envisioned running 300 kilometres from the gas field to the vessel, although a 26-inch trunkline was also studied for up to 600MMscfd.

Plant at the field would handle light oil, but the study concluded that the gas has no poisonous hydrogen sulphide, sulphur, mercury and “virtually no carbon-dioxide”.

For engineers, pipeline design pressure of 15.3MP is seen before any eventual compression.is needed.

Tags: FLEX LNG Ltd.