JGC-Hyundai JV awarded EPC contract for major low-carbon LNG plant project in Papua New Guinea
JGC Holdings Corporation is pleased to announce that its overseas engineering, procurement, and construction (EPC) operating company, JGC Corporation (hereafter "JGC"), has been selected, together with Hyundai Engineering & Construction Co., Ltd. ("Hyundai E&C"), as the EPC contractor for a major low carbon LNG plant as part of the Papua LNG Project planned by TotalEnergies and its venture partners in Papua New Guinea. Details of the project are as follows:
Client: Papua LNG Venture (Operator: TotalEnergies; partners are ExxonMobil, Santos, and ENEOS Xplora Inc.)
Location: Port Moresby, Independent State of Papua New Guinea
Scope of work: EPC services for a liquefied natural gas (LNG) plant with an annual capacity of approximately 4 MMtpy (1.33 MMtpy × three trains)
Project overview: Under this project, JGC and Hyundai E&C will form a joint venture (JGC-Hyundai JV) to construct an LNG production plant in Port Moresby, using natural gas feedstock from the Elk-Antelope gas fields in Papua New Guinea. With a planned production capacity of approximately 4 MMtpy, the project represents one of the country's next major steps in expanding its LNG export capability.
The Papua LNG venture'sselection of the JGC-Hyundai JV as EPC candidate reflects a comprehensive evaluation of the JV's track record in LNG plant construction, engineering capabilities, project execution planning, site safety management, bid price, and proposed schedule. The final EPC contract award and notice to proceed are expected to followthe Project'sfinal investment decision (FID), scheduled at some point in 2026.
JGC previously was awarded EPC work in 2009 for the PNG LNG Project's liquefaction facilities. PNG LNG, operated by ExxonMobil PNG, is Papua New Guinea's first LNG project, having achieved first LNG production in 2014. Since its startup, the plant has consistently produced more than 8 MMtpy of LNG, supporting the country's stable energy exports.
With the addition of the Papua LNG Project, Papua New Guinea's total LNG production capacity is expected to exceed 10 MMtpy. Furthermore, the LNG plant will adopt "E Drive" technology, in which electric motors--rather than conventional gas turbines--drive the refrigerant compressors used in natural gas liquefaction. This feature will significantly reduce CO₂ emissions during plant operations, contributing to the development of a low carbon LNG facility.
Against the backdrop of the global energy transition and increasing momentum toward decarbonization, LNG--among fossil energy sources--continues to play a vital role as a lower carbon fuel. The JGC Group has been involved in the construction of LNG plants representing more than 30% of global LNG production and is currently executing three major LNG projects: a large scale low carbon LNG project in the UAE, an offshore LNG project in Mozambique, and a near-shore LNG project in Malaysia.
The JGC Group will continue to actively pursue opportunities in the LNG sector as one of the world's leading engineering companies and contribute to the advancement of the global energy transition.
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