Exxon Mobil Corp. , operator of a $15.7 billion LNG venture in Papua New Guinea, halted work on the project due to another land dispute with locals, the company said today.
Exxon spokeswoman Rebecca Arnold said that Esso Highlands, the Exxon unit which operates the PNG LNG project halted work in the Hides region of the Southern Highlands after locals demanding additional compensation from the company for their land threatened workers at the plant, Reuters reported.
“ Work has been temporarily suspended in the Hides area, but is continuing throughout the rest of the project area ,” Arnold said.
PNG LNG is an integrated development that includes gas production and processing facilities in the Southern Highlands and Western Provinces of Papua New Guinea, including liquefaction and storage facilities (located northwest of Port Moresby on the Gulf of Papua) with capacity of 6.6 million tons per year.
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LNG World News Staff, March 16, 2012; Image: Santos