Santos confirms final investment decision for PNG gas project
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The news: Santos has announced a final investment decision to proceed with the Agogo production facility (APF) tie-in project in Papua New Guinea, following approval by the PNG LNG joint venture.
The numbers: The project will deliver gas from the Santos-operated Agogo production facility to the PNG LNG gas pipeline via a new 19km pipeline, together with two new wells and associated production facility modications.
Santos’ shares of capital expenditure is approximately $160 million. First gas is targeted in Q2 2028.
The project has an expected internal rate of return of more than 50% and a payback period of less than four years from the final investment decision.
The PNG LNG joint venture is a development project that produces and exports LNG from Papua New Guinea, 40% owned by Santos.
What they said: “The project is expected to be strongly value accretive, support our long-term production profile and sustain feed gas supply to PNG LNG,” said Santos CEO Kevin Gallagher.
The source: ASX
