JGC Holdings' Subsidiary Selected as Preferred Candidate for Contract Negotiations for Large-Scale Low-Carbon LNG Plant Construction Project in Papua New Guinea

JGC Holdings Corporation (Representative Director, Chairman and CEO Masayuki Sato) is pleased to announce that its overseas EPC operating company, JGC Global Co., Ltd. (Representative Director, President and COO Shoji Yamada; hereinafter "JGC Global"), in collaboration with Hyundai Engineering & Construction Co., Ltd. of Korea (hereinafter "Hyundai E&C"), has been selected as a preferred candidate for contract negotiations for a large-scale low-carbon LNG plant construction project planned by TotalEnergies and its partners in Papua New Guinea. Project details are as follows:

1. Client

Papua LNG Venture

(Operator: TotalEnergies, Partners: ExxonMobil, Santos, ENEOS Corporation)

2. Construction Site

Port Moresby, Independent State of Papua New Guinea

3. Scope of Services

Engineering, Procurement, and Construction (EPC) services for an LNG plant with an annual production capacity of approximately 4 million tons (1.33 million tons x 3 trains).

4. Project Overview

This project involves JGC Global and Hyundai E&C forming a joint venture (hereinafter "JGC-Hyundai JV") to construct an LNG plant with an annual production capacity of approximately 4 million tons, planned by ExxonMobil in Port Moresby, Papua New Guinea, using natural gas from the Elk-Antelope gas field in the Independent State of Papua New Guinea as feedstock.

Papua LNG Venture comprehensively evaluated JGC Global and Hyundai E&C's track record in LNG plant construction, technical design, project execution plan, construction site safety management, bid price, and schedule, and as a result, selected the JGC-Hyundai JV as the preferred candidate for EPC contractor negotiations. The formal EPC contract is expected to become effective after the Final Investment Decision (FID), which is scheduled for 2026.

JGC Global has a track record of receiving an EPC contract for a new LNG plant from Exxon Mobil PNG Limited in the same country in 2009 and commencing LNG production in 2014. Since its commencement, the plant has continued to produce over 8 million tons of LNG annually.

With this new project, the country's LNG production capacity is expected to reach over 10 million tons per year.

Furthermore, the expanded LNG plant will adopt "E-Drive," which uses electric motors instead of conventional gas turbines to drive the refrigerant compressors, one of the main pieces of equipment for cooling natural gas. This will contribute to reducing CO2 emissions during LNG plant operations, making it a low-carbon LNG plant.

In the context of the global trend towards low-carbon and decarbonization, known as "energy transition," LNG, which has a lower environmental impact among fossil fuels, is playing an increasingly important role. The JGC Group has a proven track record of undertaking LNG plant construction projects accounting for over 30% of the world's total LNG production. Currently, it is executing three projects: a large-scale low-carbon LNG project for the UAE, an offshore LNG project for Mozambique, and a nearshore LNG project for Malaysia.

The JGC Group intends to continue actively pursuing sales activities as a world-leading engineering company in the LNG sector, contributing to the energy transition.