GLNGI Analytics reported that TotalEnergies has no option but to postpone the final investment decision (FID) on the Papua LNG.
GLNGI Analytics reported that TotalEnergies has no option but to postpone the final investment decision (FID) on the Papua LNG as its lengthy bargaining with the project’s EPC contractors to obtain “commercially viable” contracts has not yet been concluded.
The French operator has recently revealed that it is looking at reducing the project’s cost by 20% to 25%.
According to the
Global LNG Database®, TotalEnergies has already pushed the FID on the 6 MMT/Y Papua LNG project to the first quarter of 2026 amid its efforts to reduce the project’s capital expenditure.
TotalEnergies had confirmed that “after receiving first EPC offers, it appears that the Papua LNG project will need to keep working with contractors to obtain commercially viable EPC contracts and requires more work to reach FID."
The project is also struggling to secure funding, however TotalEnergies repeatedly said that “things are on track” as it was "very comfortable" about securing funding for the roughly US$12 billion project, despite European banks' increased reluctance to fund new fossil fuel projects.
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