Twinza and the Papua New Guinea Government signed the Gas Agreement for Pasca A last December. In this exclusive interview with Business Advantage PNG, Twinza Executive Chairman and Managing Director Stephen Quantrill explains why he believes his firm now has enough certainty to prepare for FID.

The Pasca A project sits in the Gulf of Papua. Credit: Twinza.

The recent Pasca Gas Agreement has given project owner Twinza the fiscal certainty to begin preparations for a final investment decision (FID) on PNG’s first offshore gas project, according to Twinza Executive Chairman and Managing Director, Stephen Quantrill.

Twinza and the Papua New Guinea Government signed the Gas Agreement for Pasca A in December 2024, under which PNG is expected to receive close to 70 per cent of the project’s value through a combination of taxes, royalties, levies and equity participation.

The agreement sets in motion the acquisition of up to a 50 per cent interest in Pasca A by the state-owned Mineral Resources Development Company (MRDC) through a special purpose entity, Hevehe Petroleum Limited, which made its first payment on the day that the deal was signed. Hevehe will pay US$160 million (K620 million) in stages for a 50% stake, according to a May 2024 deal between it and Twinza.

“We’re working with a government that’s got a lot of projects on its plate, and it has to find the right moment to provide the capacity and focus to get it done.”

Road to FID

Quantrill says the Gas Agreement also provides high confidence on the pathway to the grant of the Petroleum Development Licence, the final regulatory approval needed for the US$1.5 billion project.

“The licence will be granted upon Twinza declaring FID and demonstrating that funding towards first production has been secured,” he tells Business Advantage PNG.

With the Gas Agreement secured, Twinza has commenced the final stage of detailed design and FEED (front-end engineering and design) activities in preparation for FID. It is targeting a final investment decision by the first half of 2026, with first production in late 2028 or early 2029.

“We’ve already done a huge amount of pre-FID work. Now, we are revisiting a lot of that work and refreshing design and cost estimates to enable us to take FID as quickly as we can,” Quantrill says.

Twinza has invested more than K400 million in Pasca A since acquiring the project in 2008.

It envisages a two-phase development: the first phase will comprise a minimal wellhead platform, a mobile offshore production unit, floating storage and an offloading vessel. It is expected to deliver seven million barrels-equivalent of hydrocarbon liquids per year.

The second phase, which would be completed as soon as three years after the first, will add a floating LNG facility, producing up to 750,000 tonnes per year of liquefied natural gas.

Positive signal

Pasca A is one of five major greenfield resources projects in Papua New Guinea aiming to commence construction by 2030, alongside the Papua LNG and P’nyang LNG projects and the Wafi-Golpu and Frieda River copper-gold projects.

Quantrill sees the Pasca A project as “a very positive signal for the resource industry and the country,” adding that, as an investor, Twinza understands the government’s need for caution regarding the timing and economics of projects.

“We’re working with a government that’s got a lot of projects on its plate, and it has to find the right moment to provide the capacity and focus to get it done,” he says.

“Each project is going to be assessed on its own merits. But the fact that Pasca and Papua LNG have a path forward and are doing active work to help take the projects into development is very positive for the country.

“Hopefully, there will be many more to follow.”