Exxon Mobil clears $15b LNG venture

MELBOURNE: Exxon Mobil Corp and its partners approved development of a $15 billion Papua New Guinea liquefied natural gas venture, the country's biggest resource project, to supply the cleaner-burning fuel to China and Japan.

Construction will start in 2010 after the companies complete agreements with their customers and financing arrangements with lenders, Irving, Texas-based Exxon, the largest US oil company, said in a statement yesterday. Fuel exports are due to begin by late 2013 or 2014.

Papua New Guinea's economy may double in size, according to Oil Search Ltd, a partner in the venture along with Santos Ltd. The plant is one of more than 12 planned in Australia and the neighboring South Pacific nation to meet growing Asian demand for less-polluting alternatives to coal and oil.