ExxonMobil finalizes PNG LNG sales to TEPCO

PERTH (Reuters) - U.S. energy firm ExxonMobil Corp (XOM.N) has finalized a gas sales contract with Japan's Tokyo Electric Power (9501.T) for its project in Papua New Guinea, putting the $15 billion development on track for approval on Tuesday.

TEPCO, Japan's largest utility, has entered a binding agreement with project partners for the purchase of 1.8 million tonnes per year (mtpy) of liquefied natural gas (LNG) for a period of 20 years, Exxon said in a statement.

The contracted volume includes the plant's recently expanded output of 0.3 mtpy, which means all of the project's 6.6 mtpy capacity has now been contracted, project partner Oil Search (OSH.AX) said in a separate statement.

Exxon and partners have not yet finalized two other gas sale agreements with Taiwan's CPC Corp and Japan's Osaka Gas Ltd 9532. ahead of a self-imposed deadline of December 8 for the project's final investment decision.

However, a government official told Reuters that the project will still be approved by project partners on Tuesday.

"The government and partners will be sanctioning the project in an official signing ceremony on Tuesday morning," said a Papua New Guinea government official who requested anonymity because he was not authorized to disclose the information ahead of the official release.

He said the government is set to sign off on the project's 10 development licenses and to reach a revenue sharing agreement with landowners for the Hides gas field by Monday evening.

Exxon could not immediately be reached for comment.

Analysts have long considered the PNG LNG project to be a forerunner amongst the raft of nearly 16 planned LNG projects in the Asia-Pacific region after Exxon swiftly secured deals to underpin its full capacity earlier this year.

The venture includes Australia's Oil Search Ltd (OSH.AX), Santos Ltd (STO.AX), Japan's Nippon Oil Corp 5001.T and PNG land. (Reporting by Fayen Wong; Editing by Michael Urquhart)