High-Pressure Natural Gas Pipeline in Geohazard Region of Papua New Guinea Sustains Mw7.5 Earthquake: Key Factors of Successful Outcome

Author(s):  
Robert Albrecht ◽  
John Calame ◽  
Mike Cook ◽  
Ignacio Falcon ◽  
Patrick Lee

Abstract ExxonMobil PNG Limited (EMPNG) operates the Papua New Guinea Liquefied Natural Gas Project (PNG LNG), an integrated LNG project comprising wellpads, gathering lines, gas conditioning plant, onshore and offshore export pipelines, liquefaction plant and marine terminal in Papua New Guinea (PNG). The PNG LNG project is a joint venture with participation by ExxonMobil, Oil Search Limited (OSL), Kumul Petroleum, Santos, JX Nippon Oil and Gas Exploration and Mineral Resources Development Company, and began production in 2014. The highlands of PNG presents a challenging physical environment, with high rainfall, steep terrain, active tectonics and seismicity, and ongoing landsliding and erosion. The PNG LNG onshore gas and condensate pipelines confront these physical challenges by having to traverse approximately 150 km of steep volcanic, mudstone and Karstic highlands along the Papuan Fold and Thrust Belt, the modern leading edge of active mountain-building, plus an additional 150 km in Karstic lowlands. During design, construction and operations of the pipelines, ExxonMobil has addressed these challenges in partnership with the engineering, construction and specialist consulting communities. On February 25th, 2018 (UTC) a Magnitude 7.5 earthquake struck the PNG highlands. The event, along with its approximately 300 aftershocks, caused widespread community impact, landsliding and damage to over 1000s of km2, and was centered directly under the highlands portion of the PNG LNG pipelines. The pipelines however, did not lose containment or pressure, and, following inspections and repairs to the PNG LNG gas conditioning plant, PNG LNG production was restored within seven weeks of the main shock. This technical paper and companion oral presentation discuss the key factors of this successful outcome, in particular the sustained condition of the gas and condensate pipelines. Contributing factors to the pipeline’s success include route selection, pipe material specification, early commitment to field studies, careful assessment of geohazards, high awareness of off-ROW community impacts, micro-routing during construction, and active geohazard management during startup and operations. The paper demonstrates that, with respect for the host community, thoughtful engineering, careful construction and ongoing surveillance, pipelines can be safely and successfully designed, constructed and operated in remote and extreme geohazardous environments.

Asian Survey ◽  
2017 ◽  
Vol 57 (1) ◽  
pp. 194-198 ◽  
Author(s):  
Ronald May

Prime Minister Peter O’Neill came under continuing pressure to step down pending resolution of corruption charges but resisted demands from university students and civil society groups and convincingly defeated a parliamentary vote of no confidence. Papua New Guinea experienced a further decline in GDP growth and faced landowner threats to shut down liquefied natural gas production.


Subject The economic outlook for Papua New Guinea. Significance The outlook for the leading commodity exports from Papua New Guinea (PNG) -- natural gas, oil and gold -- remains positive, but by most counts the economy is deteriorating and will worsen as Asia’s aggregate demand for resource commodities falls. Impacts The new government may pass legislation to obtain higher returns to PNG from foreign investment. Perceived corruption and declining governance will directly damage investor confidence. As financial and economic pressures mount, there may well be changes in macroeconomic policy.


2013 ◽  
Vol 27 (2) ◽  
pp. 158-172 ◽  
Author(s):  
Danny O’Brien ◽  
Jess Ponting

This research analyzes a strategic approach to managing surf tourism in Papua New Guinea (PNG). Surf tourists travel to often remote destinations for the purpose of riding surfboards, and earlier research suggests the mismanagement of surf tourism in some destinations has resulted in significant deleterious impacts on host communities. The research question in this study addresses how surf tourism can be managed to achieve sustainable host community benefits in the context of a developing country. Primary data came from semistructured interviews and participant observation. The findings demonstrate how sport governing bodies can engage host communities in a collaborative framework for the sustainable utilization of sport tourism resources. The derived knowledge from this research may decrease host communities’ reliance on less sustainable commercial activities, and inform policy and practice on sustainable approaches to using sport tourism for community building and poverty alleviation.


Author(s):  
Robert Albrecht ◽  
Rhys-Sheffer Birthwright ◽  
John Calame ◽  
Justin Cloutier ◽  
Michael Gragg

Abstract The Papua New Guinea Liquefied Natural Gas (PNG LNG) project is a joint venture with participation by ExxonMobil, Oil Search Limited (OSL), Kumul Petroleum, Santos, JX Nippon Oil and Gas Exploration and Mineral Resources Development Company, and began production in 2014. As described in a previous IPC paper, the project, operated by ExxonMobil PNG Limited (EMPNG) sustained a M7.5 earthquake and approximately 300 aftershocks in 2018, epicentered directly under key facilities. Around 150 km of high-pressure gas and condensate pipelines in the rugged PNG highlands were affected but did not lose containment or pressure. Immediately following the M7.5 event, EMPNG began efforts to assess and inspect the pipelines in order to ensure public safety, and, at the appropriate time, restore LNG production. The technical efforts took place along the pipeline Right of Way (ROW) in a remote jungle environment, which, following the earthquake, was also a disaster zone in which the few available resources were prioritized towards humanitarian relief. Due to resource constraints, the pipeline field inspection team typically numbered only two or three specialists. The inspection team drew heavily on analysis work, ongoing since project startup in 2014 and in progress when the earthquake occurred, that simulated the condition of the ROW and pipe stress state following earthquake events similar in magnitude to what actually occurred. The body of existing analysis work allowed the field team to compare aerially observed ROW ground movements to previously modeled cases, and rapidly infer pipe stress state without actually measuring pipe deformation on the ground. Due to resource constraints, that latter activity, if required before startup, would have significantly delayed project restart. The worldwide network of technical resources that had been assisting with ongoing simulations was quickly re-directed to analyzing actual observed ground deformations, efficiently supporting the small field team from outside the disaster zone. After restart, field inspection activities continued, observations were categorized, and an Earthquake Recovery (EQR) organization was initiated to execute ROW repairs. Just as the initial inspection work was aided by pre-earthquake analyses, EQR activities have been expedited by the extensive ROW maintenance program that had been ongoing prior to the earthquake. This paper and accompanying oral presentation present details of the inspection and recovery, and show that the extensive simulations, preparations and maintenance programs supported by EMPNG during project operations prior to the earthquake enabled a rapid and efficient response when the earthquake actually occurred, and thus provided enormous value to the business.


Asian Survey ◽  
2010 ◽  
Vol 50 (1) ◽  
pp. 247-252 ◽  
Author(s):  
James Chin

The year 2009 was challenging for Papua New Guinea. Domestically, the most serious political issues were moves to depose Michael Somare and anti-Chinese rioting in major towns. The economy was in fairly good shape and the long-awaited gas pipeline was finally off the ground.


2021 ◽  
Author(s):  
◽  
Elly Kinkin

<p>This research is a study of the Papua New Guinea (PNG) Liquefied Natural Gas (LNG) project, the country’s biggest single investment in the extractive industry. The focus of the research is on understanding the impact and effect of the project on the country and in particular the distribution of the revenue and the influences on the distribution of the revenue. An additional area that was also looked at was the financial transparency and accountability of these distributions. The research arose in direct response to the fact that Papua New Guinea (PNG), which is well endowed with a wide range of natural resources, does not seem to use its natural wealth effectively to improve the human development of its people. The exploitation of these resources has in fact been associated with recurring fiscal and monetary crises, concentrations of investment in the minerals and petroleum sector, no improvement in the basic public services, and corruption at all levels of government. There has also been a persistent rising level of socio-economic inequality in the immediate communities hosting major resource projects and increasing poverty in the urban areas and pockets of rural areas. The research took a case study approach and used a multi-disciplinary lens by looking at the political, economic and anthropological literature and gleaning from them propositions about the influences on the distribution of revenues. In particular the case was used to investigate propositions related to the “resources curse” hypothesis that, in the absence of good governance, developing country governments are at risk to economic and fiscal mismanagement and corruption from the availability of resource rents from extractive industries. The research gathered evidence from people from project-specific documents made available largely through social media, accessible budget papers, parliamentary proceedings (Hansard), Acts of Parliament, government policy edicts, statements and press releases and websites of key government departments, state owned enterprises and the companies involved in the project, and some interviews of key informants. The Extractive Industry Transparency Initiative (EITI) reports on PNG were also specifically examined. The project has been exporting LNG now since 2014. While the construction of the project had a significant effect on economic growth, wages and prices and the exchange rate, the longer-term effects are more contestable. Returns to the economy and government revenues have been lower than forecast due to lower prices but also the effect of tax concessions and debt servicing leading to flows offshore larger than forecast. The government and landowners were making decisions based on a flawed projection and information to the extent that the government has been unable to sequester any revenues in a Sovereign Wealth Fund. Continued volatility in petroleum prices has affected government budget planning but overoptimistic forecasting of revenues including from the PNG (LNG) project, particularly in 2014-16, led to ballooning deficits. For short-term political reasons, government budgeting has tended to over-commit to new spending during the commodity booms and be forced in the downswings into cutbacks damaging to public services and investment or to rapid increases in broadly defined public debt. Budgets also pre-committed project revenues to new public expenditure project. The key point was the lack of attention being given to the downside risks of revenue projections supplied by the operator. The politics of access to resource rents have played out in the form of relations between local landholders and the government and in how the executive power has been able to structure access to project revenues nationally. The project also has had a destabilizing effect on local society where local-national relations have influenced the national politics of resource rent distribution and conversely have been put under pressure over contestation of the project impacts and access to benefits. Further, landholders have to date not received their full financial entitlements from the project despite the promises being made by successive governments since 2009. There has been ongoing discontent amongst landholders. The lack of transparency about the use of project revenues, particularly those not accruing directly to the Public Account, has contributed to this discontent. The research also found the few key project agreements have been officially released but much information has its way into the public domain via social media. Budget-related information has been more plentiful but the EITI has been hampered by poor financial reporting by public organisations receiving and managing revenues. When project information does enter the public and government is forced to acknowledge it, it can influence how government conducts its business and makes decisions.</p>


Subject Political and economic outlook for Papua New Guinea. Significance Papua New Guinea (PNG) has benefitted from over a decade of buoyant economic growth, culminating in a forecast GDP growth rate of 15% in 2015. However, the outlook for PNG's major commodity exports (natural gas and gold) is now declining as aggregate demand for resources falls in China and elsewhere in the region. This will lead to a fall in the growth of overall government revenues. Impacts The price for spot market liquefied natural gas exports to Asia is likely to decline. The government will extend its overall fiscal deficit despite announced intentions to reduce debt under the medium-term fiscal strategy. The much-publicised sovereign wealth fund, announced several times but still not implemented, will continue to languish. Diversifying agriculture and fisheries to provide more options for disadvantaged rural populations and SME development will be slow. Foreign investment in PNG will slow down, particularly in gold, copper and other areas of mining.


1973 ◽  
Vol 13 (2) ◽  
pp. 17
Author(s):  
E. R. Smith

A highlight of 1972 has been the continued success on the Northwest Shelf where it has become apparent that the reserves of natural gas are very large. There have also been two promising oil discoveries in this area.Significant new gas fields were discovered in the Cooper Basin, which have finally assured sufficient reserves for the Sydney market. However the development of the Tirrawarra oil field has been disappointing.Petroleum exploration activity in Australia and Papua New Guinea improved slightly during 1972, mainly because of increased activity in offshore areas. It is likely that this trend will continue through 1973.


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