Equity changes in Papua New Guinea LNG project: ExxonMobil becomes the largest shareholder, Chinese companies did not receive equity

In Papua New Guinea’s large-scale LNG energy case, there have been changes in equity. (File photo)

[Financial Channel/Comprehensive Report] A large-scale LNG energy project in Papua New Guinea (Papua New Guinea) that has been in preparation for more than 10 years has undergone major changes. After Papua LNG re-tendered, adjusted development plans and optimized costs, the estimated capital expenditure dropped to approximately US$14 billion (approximately NT$441 billion); Chinese companies were initially excluded and later re-included in the bidding scope. However, the latest structure shows that the American company ExxonMobil increased its shareholding to 34.1%, becoming the largest single shareholder of Papua LNG and taking over the operating rights. After Chinese companies re-entered the market, why didn’t they even get the equity in the end? The reason behind this is a mystery.

Papua LNG mainly develops the Elk and Antelope natural gas fields in the Gulf Province of Papua New Guinea, with a planned annual output of approximately 5.6 million tons of LNG. The products are mainly supplied to the Asian market. This project has been in preparation for more than 10 years and has been delayed many times in the past due to issues such as cost, financial disputes and partner negotiations.

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Reuters pointed out that the project has saved nearly US$4 billion since 2024 through re-tendering, redesign and cost optimization, and a final investment decision (FID) is currently expected to be made in the fourth quarter of 2026.

The latest shareholding changes have attracted considerable attention. Reuters reported that France's Total Energies reduced its shareholding from 29.1% to 20%, and ExxonMobil increased its shareholding from 28.7% to 34.1%, becoming the largest single shareholder and acquiring operating rights; Australia's Santos' shareholding rose to 21%, and Japan's ENEOS Xplora rose to 2.4%.

ExxonMobil's acquisition of operating rights was not entirely without a business background. The company was originally responsible for operating PNG LNG, another large-scale natural gas project in PNG. Having the two LNG projects operated by the same company is expected to generate synergistic benefits and improve execution efficiency.

Japan and South Korea have also appeared on the engineering side. A joint venture formed by Japan's JGC and South Korea's Hyundai E&C has been selected as the main contractor for the Papua LNG liquefaction plant project, which shows that the core of the project has gradually formed a structure involving companies from the United States, Japan, South Korea and France.

But it is worth noting that the role of Chinese companies has changed. Total Energies will restart bidding at the end of 2024, and while adjusting project specifications and reducing costs, it will reopen bidding to Chinese companies. In 2025, energy industry media also reported that Chinese companies have entered the bidding scope of some major contracts.

However, as of the latest public structure, Chinese companies do not appear on the Papua LNG equity list. In other words, Chinese companies were excluded from the bidding in the early stages and were later allowed to bid again, but in the end they did not obtain the currently public project equity, leaving question marks worth tracking.

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