Exxon's PNG LNG project cost balloon to US$19bil

SYDNEY: The cost of Exxon Mobil's massive gas export project in Papua New Guinea will soar more than 20 percent to US$19 billion due to foreign exchange impacts and delays from work stoppages and land access issues, but it is still expected to start in 2014.

Exxon's Papua New Guinea liquefied natural gas plant, known as PNG LNG, is the country's biggest-ever resource undertaking and is expected to boost GDP by 20 percent. The gas export project spans a large portion of the island nation and will pipe gas hundreds of kilometers to an LNG export plant near the capital in Port Moresby.