What is the primary role of Daewoo E&C in the Papua LNG development?

Daewoo E&C will serve as the preferred engineering, procurement, and construction contractor for a major plant package. The scope covers structural, mechanical, and piping infrastructure vital to the integration and operation of the liquefaction facilities.

Who are the major equity stakeholders in the Papua LNG project?

The project is operated by TotalEnergies in partnership with ExxonMobil, Australian energy company Santos, and the state-owned Kumul Petroleum Holdings. Together, they hold the development rights for the onshore Elk and Antelope gas resources.

How does this development align with TotalEnergies' global energy strategy?

TotalEnergies aims to expand its LNG portfolio to comprise a significant portion of its total hydrocarbon production mix by 2030. Sourcing low-emission, cost-efficient LNG from the Asia-Pacific region enables the supermajor to supply high-demand Asian power markets directly and cost-effectively.

Offshore Energy · August 13, 2026 (22h ago) · 1 min read

TotalEnergies handpicks Daewoo E&C for work on LNG project in Oceania

TotalEnergies SE

Analysis

AI-assisted analysis · reviewed by Yuri Kan

TotalEnergies has designated South Korea's Daewoo Engineering & Construction as the preferred contractor for a critical engineering and construction package on its flagship Papua LNG development in Papua New Guinea. This strategic selection marks a pivotal advancement toward commercial execution for the low-carbon LNG export venture in the Asia-Pacific basin. The appointment underscores TotalEnergies' continued capital deployment into cost-competitive, export-oriented gas infrastructure despite broader industry cost inflation pressures.

Key Facts

TotalEnergies selected South Korean contractor Daewoo E&C as the preferred bidder for a major engineering, procurement, and construction package.
The contract pertains to the multi-billion-dollar Papua LNG export development located in Papua New Guinea, Oceania.
TotalEnergies operates the Papua LNG upstream venture alongside partners including ExxonMobil and Santos.
The Papua LNG facility is engineered to incorporate carbon capture and storage technology to minimize its emissions profile.
Daewoo E&C's selection follows an extensive competitive bidding process among leading international offshore and onshore contractors.
The project targets an export capacity of approximately 5.6 million tonnes of LNG per annum from two new liquefaction trains.

Background & Context

The Papua LNG development centers on the Elk and Antelope gas fields in Block PRL 15, discovered over a decade ago in the Gulf Province of Papua New Guinea. TotalEnergies and its joint venture partners entered the front-end engineering design (FEED) phase in 2022 to optimize plant architecture and commercial terms. Progress toward a final investment decision (FID) had faced delays due to engineering reviews, market volatility, and contractor pricing adjustments across the global LNG supply chain.

Market Impact

Contract awards of this scale illustrate robust structural demand for high-tier Asian engineering, procurement, and construction contractors in global liquefaction projects. For TotalEnergies, solidifying top-tier EPC partners reduces project delivery risk and provides critical cost visibility necessary to secure project financing. Regionally, the move enhances the strategic position of Papua New Guinea as a reliable LNG supplier to key East Asian import markets such as Japan, South Korea, and China. Furthermore, it reflects a broader industry imperative where supermajors prioritize LNG assets that balance high net-back margins with lower operational carbon intensity.

What to Watch

Market participants should monitor the finalization and formal signing of the commercial contract between TotalEnergies and Daewoo E&C in the coming quarters. Key milestones ahead include securing final regulatory clearances, finalizing long-term LNG sales and purchase agreements (SPAs), and reaching a formal Final Investment Decision expected by 2025.

Frequently Asked Questions

What is the primary role of Daewoo E&C in the Papua LNG development?: Daewoo E&C will serve as the preferred engineering, procurement, and construction contractor for a major plant package. The scope covers structural, mechanical, and piping infrastructure vital to the integration and operation of the liquefaction facilities.
Who are the major equity stakeholders in the Papua LNG project?: The project is operated by TotalEnergies in partnership with ExxonMobil, Australian energy company Santos, and the state-owned Kumul Petroleum Holdings. Together, they hold the development rights for the onshore Elk and Antelope gas resources.
How does this development align with TotalEnergies' global energy strategy?: TotalEnergies aims to expand its LNG portfolio to comprise a significant portion of its total hydrocarbon production mix by 2030. Sourcing low-emission, cost-efficient LNG from the Asia-Pacific region enables the supermajor to supply high-demand Asian power markets directly and cost-effectively.

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