Climate

Climate change is one of the defining challenges of our time. Meeting growing global energy demand while limiting greenhouse gas emissions requires careful choices in how energy projects are designed, built and operated.

The project is also well positioned to supply natural gas to Asia, where coal continues to play a dominant role in power generation. In this context, natural gas can support the energy transition by providing a lower-carbon alternative, as gas-fired power plants emit significantly less CO2 than coal-fired plants.

From the earliest stages of development, the Papua LNG project has integrated climate considerations into its engineering and planning. A comprehensive Climate Change Risk Assessment (CCRA) has been conducted to evaluate both physical climate risks, such as extreme rainfall, flooding and heat, as well as transition risks linked to evolving energy policies, technologies and markets. The CCRA was completed in compliance with Equator Principles IV, the  recommendations of the Taskforce for Climate-related Financial Disclosures (TCFD) and the requirements of the IFC Performance Standards. This analysis ensures the project is designed to remain resilient to future climate conditions while minimizing its greenhouse gas footprint.

Two priorities guide the project’s climate approach:

  1. Limiting greenhouse gas emissions,
  2. Minimizing the energy required to operate the project.

Greenhouse gas emissions reduction initiatives

Greenhouse gas (GHG) emissions associated with the Papua LNG project have been carefully assessed as part of ongoing engineering studies. The intensity of GHG emissions for both the upstream and downstream components is still under evaluation and will be communicated at Final Investment Decision (FID). Scope 1 emissions correspond to direct emissions generated by project facilities.

The project is designed so that no Scope 2 emissions are expected, as electricity will not be imported from external sources. Instead, energy required for operations will be generated within the project’s own facilities.

To limit these emissions as much as possible, the Papua LNG project integrates five major greenhouse gas reduction initiatives directly into its design.

Papua LNG asset boundaries for Scope 1 & 2 emissions

Five initiatives to reduce project emissions

Several engineering solutions have been incorporated to limit greenhouse gas emissions across the project’s operations:

  1. Acid gas reinjection: Native CO2 and hydrogen sulphide (H₂S) removed during gas processing will be compressed and reinjected into underground reservoirs rather than released into the atmosphere. The project targets more than 99% reinjection of acid gas, ensuring permanent storage underground.
  2. Integration with existing LNG facilities: Operational integration with the existing Papua New Guinea LNG downstream infrastructure will allow shared facilities and improved operational efficiency, reducing overall fuel consumption.
  3. High-efficiency combined cycle power generation: Electricity required for the project will be generated using combined cycle power plants, which offer significantly higher energy efficiency compared with conventional gas-fired power generation.
  4. Electrified liquefaction trains: The new Papua LNG liquefaction trains will use electric drives rather than traditional gas turbines, reducing fuel consumption and associated emissions.
  5. Flare gas recovery systems: Flare gas recovery systems will capture gas that would otherwise be flared during operations and reuse it within the process, reducing unnecessary emissions.

A highly efficient LNG project

With these design choices, Papua LNG is expected to perform among the lowest-emissions LNG projects worldwide. Benchmarking against global LNG projects indicates that the project is projected to have the second-lowest greenhouse gas emissions intensity among 94 LNG projects globally, including those in operation, under construction or under development.

This combination of efficient design, emissions-reducing technologies and continuous monitoring reflects the project’s ambition to deliver reliable energy while limiting its climate impact.