Globe/wire say Talisman studies floating LNG plant

Globe/wire say Talisman studies floating LNG plant

2008-12-02 08:04 ET - In the News

The Globe and Mail reports in a Bloomberg dispatch Tuesday that Talisman Energy, an oil and gas producer with interests in Papua New Guinea, says it is studying the use of a floating liquefied natural gas plant for its Pandora discovery in the Gulf of Papua. The unbylined item says the company believes the technology, which has yet to be used in a commercial project, may be suitable for developing the field, which is estimated to hold at least 1.5 trillion cubic feet of gas.

Terry Buchy, Talisman's manager of engineering business development, made the comments Monday in Sydney. Rising energy demand and advances in technology are spurring gas producers to consider tapping fields that were previously considered either too small or too far from coastlines to be profitably developed. Pandora, which is about 280 kilometres from an existing processing plant, lies in "benign" seas in the Gulf of Papua that would be suitable for a floating LNG plant, Mr. Buchy said.

Talisman plans to drill appraisal wells at the field in the second half of 2010 as well as potential exploration wells nearby, said Lawrence Bernstein, responsible for the company's exploration in PNG. Talisman shares fell $2.14 to $10.27.