The PNG LNG Project’s 407 km offshore export pipeline has completed pipelay, and the deepwater pipelay vessel has been demobilised, according to Oil Search’s 2012 second quarter activities report.

Oil Search Managing Director Peter Botten also provided updates on some other milestones that had been achieved during the quarter.

Mr Botten said “At the PNG LNG plant site, the roofs of both LNG storage tanks were raised, the Train 1 propane compressors were set onto the foundations, and the jetty trestle construction was completed. By the end of the quarter, most of the steelwork for Trains 1 and 2 had been erected. Installation of the piperacks, pipe and heavy equipment on the process trains had also commenced.

“Route clearance and stringing of the onshore pipeline reached Kutubu during the quarter, with over 180 km of the onshore pipeline welded, trenched and buried as at the end of June. Installation of the central processing facility and PNG LNG Project interface equipment continued, as part of the Oil Search-operated associated gas project. The oil fields remain on track to commence delivery of commissioning gas to the project in the second quarter of 2013.

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“Earthmoving activities at the Komo Airfield continued to make good progress and pavement trials commenced. A contract for the Antonov heavy-lift aircraft, which will transport the major heavy items of equipment for the Hides gas conditioning plant (HGCP) construction to site, was awarded.

“At the HGCP, the process area was handed to the construction contractor who commenced installation of structural steel and underground piping. Mobilisation and commissioning of Rig 702, the first of the two new drill rigs, was ongoing during the quarter. The first Hides well is planned to commence drilling soon. The second rig, Rig 703, is being mobilised to Hides, with drilling expected to commence later in the year.”

The PNG LNG Project involves a two-train, 6.6 MMt/a LNG processing facility, envisaging the integrated development of the Hides, Angore and Juha gas fields, as well as associated gas from the Kutubu, Agogo, Gobe and Moran oil fields.

The gas will be transported to the LNG plant near Port Moresby through approximately 850 km of large diameter pipeline.

Joint venture participants include Esso Highlands as operator (33.2 per cent), Oil Search (29 per cent), PNG Government (16.6 per cent), Santos (13.5 per cent), Nippon Oil (4.7 per cent), Mineral Resources Development Company (2.8 per cent), and Petromin PNG Holdings Ltd (0.2 per cent).