Wood has secured a five-year, $200 million construction services contract from ExxonMobil PNG to support brownfield projects across the PNG LNG project in Papua New Guinea.
The contract covers construction work at the Hides Gas Conditioning Plant, the LNG facility at Caution Bay, approximately 700 kilometers of pipeline infrastructure, and associated well pads and flowlines. More than 200 Wood employees in Papua New Guinea will work on the contract, providing project management, civil and structural construction, piping, mechanical, electrical and instrumentation services.
Wood has worked with ExxonMobil PNG since 2013, providing engineering, procurement, construction and operational services.
“For more than a decade, we’ve supported ExxonMobil PNG to deliver safe and reliable PNG LNG Project operations,” Wood COO Steve Nicol said, adding that the latest work will help maintain and enhance critical project infrastructure.
PNG LNG is one of Papua New Guinea’s most important energy projects and the country’s largest-ever private-sector investment. The $19-billion integrated development began operations in 2014 and currently has capacity to produce more than 8 million tonnes of LNG annually, primarily supplying Asian customers.
The contract also comes as Papua New Guinea prepares for another major expansion of its LNG industry. Earlier this month, TotalEnergies agreed to transfer operatorship of the proposed Papua LNG project to ExxonMobil, as the roughly $14-billion development moves toward a final investment decision. Papua LNG is designed to produce around 5.6 million tonnes per year, with the partners seeking synergies with the existing PNG LNG infrastructure.
For Wood, the new contract strengthens a relationship with ExxonMobil PNG that now stretches back more than a decade while securing a substantial backlog of brownfield work through the early 2030s.
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