TotalEnergies nears Papua LNG investment decision after cost cuts, Exxon deal

TotalEnergies says it has cleared key contractual and commercial steps for its Papua LNG project in Papua New Guinea, moving the plan toward a final investment decision. The French energy major completed tendering for engineering, procurement and construction of LNG facilities, with contracts awaiting approval by joint-venture partners. TotalEnergies also reported nearly $4 billion in cost savings since 2024 through rebidding and optimizing design, bringing capital spending to around $14 billion. The company has passed project operations to ExxonMobil, which already runs the neighboring PNG LNG plant. TotalEnergies will sell a 9.1% interest while keeping 20%, maintains its offtake share, and agreed updated gas terms with the PNG government and an LNG marketing venture with Kumul Petroleum for 2.4 Mtpa.