Papua New Guinea Friday signed a deal with energy giants Total and ExxonMobil on a proposed new project that would significantly boost the natural gas exports from the poor Pacific Island nation.
The parties hope to finalise the Papua LNG (liquefied natural gas) project by the first quarter of next year, the French firm said in a statement, adding that they would launch initial engineering studies.
The new project, if realised, will complement production from a USD 19-billion natural gas plant developed by ExxonMobil that began shipping gas throughout Asia in 2014.
In a speech at a gathering of business leaders in Port Moresby, Total CEO Patrick Pouyanne described the deal as a "first stone, an important stone" towards developing the production of natural gas, which he said would be at the "core of the evolution of the energy landscape."
Total said the proposed project -- located in the Gulf Province 280 kilometres (175 miles) west of Port Moresby -- will "increase Papua New Guinea from a two to four train producing supplier."