How much Volume of LNG Exported Annually?

We are exporting over 8.3 million tonnes of LNG each year to our customers in Asia. To meet customer’s commitment, Exxon maintains long-term charters on a fleet of four LNG carriers which include the Spirt of Hela, Gigira Laitebo, Papua and Kumul. Their average carrying capacity is around 173, 800 cubic meters (6,137,689.08 cubic feet) Liquid Gas. Annually there more than 100 cargos leaving Exxon’s marine facility at an average of around 120 shipments.

*How much we are generating from LNG per Year?*

LNG Price fluctuates every year depending on market. The average price of LNG is $9.52 per thousand cubic feet.

$9.52 x 6,137,689.08 cubic feet = $58, 430,800.04

USD To PNG Kina (USD58, 430,800.04 x 3.51 Forex) = K205, 092,108.146 per shipment.

For one year: 110 shipments x K205, 092,108.146 = K24, 611, 052, 977.52.

*How much we have earned thus far from 2014 -2021?*

On 25 May 2014, the first shipment of liquefied natural gas from the PNG LNG Project was delivered by the Spirit of Hela to the Tokyo Electric Power Co. Inc. (TEPCO) in Japan.

So, from 25 May, 2014 to 25th May, 2021 is 7 years.

7 years x K24, 611, 052, 977.52. = K172, 277,370,842.64

120 shipments x 7 = 840 shipments x K205, 092,108.146 = K172, 277,370,842.64.

So far we have made K172, 277,370,842.64 or K172.3 billion.

*Who are the shareholders?*

Shareholding in LNG/PNG is distributed as follows: Exxon Mobil (32.2%) ; Oil Search Ltd. (29%); Kumul Petroleum holdings representing the PNG government)(16.2%) Santos Limited (13,5 %%); Mineral Resources Development Company (MRDC)representing landowners, (2.8%): JXTG Nippon Oil & Energy (4.7%).

Exxon Mobil Share: 32.2% x K172, 277,370,842.64 = K55, 473,313,411.33 

Oil Search Share: 29% x K172, 277, 370, 842. 64 =K49, 960, 437, 544.37.

Kumul Petroleum Share: 16.2% x K172, 277, 370, 842. 64 = K27, 908,934, 076.5077

Santos Limited Shares: 13.5% x K172, 277, 370, 842. 64 = K23, 257,445,063.76

JXTG Nippon Oil & Energy Share: 4.7% x K172, 277, 370, 842.64 = K8, 097,036,429.60.

MRDC Share: 2.8% x K172, 277, 370, 842.64 = K4, 823, 766, 383.594.

UNKNOWN SHARE: 1.6% x K172, 277, 370, 842.64 = K2, 756,437,933.48. (Missing Percentage to be investigated).

*So how landowner equity and Royalties are distributed once money hits MRDC account?*

From total income/revenue from our gas, MRDC then make 40% cash payments to respective block chairman, the remaining 60% is divided whereby 30% is allocated to community investment Trust Fund (CITF) and another 30% is in Future Generation Trust investment purposes, a requirement of the Oil and Gas Act.

So MRDC share further broken down according to the percentage.

Landowner Share: 40% x K4, 823,766,383.594 = K1, 929, 506, 553.41

MRDC Share: 60% x K4, 823,766,383.594 = K2, 894, 259,830.180

Block Chairman gets their 10% admin fees so now we landowners left with;

10% x K1, 929, 506, 553.41 = K192, 950, 655.341

Whatever remaining is shared to all landowners in Southern Highlands, Hela, Gulf and Central Provinces according to their respective segments (Pipeline, Wellpads, and Plant Site etc.) at agreed percentage.

Each Province likely to receive 50 million each. 

Each tribes gets K50 thousand when 50 million divided into 1000 Tribes.

Each person likely to get K25 when K50 thousand is shared amongst two thousand population.

Hela people need to know.

By MT....