Pacific Flex Node

Lae LNG Hub

The Pacific flex node for China-facing LNG — buffer storage, cargo timing, and redirection on the PNG–Asia corridor.

Complements Caution Bay — physical optionality and buffer capacity at Lae, not a replacement export hub.

Pacific Supply, Asian Demand

China is the world's largest LNG importer — and increasingly focused on supply flexibility and energy security. Volumes are large, concentrated, and exposed to seasonal and price volatility.

Few Pacific nodes offer what Lae is built for: physical flexibility at scale — buffer storage, cargo timing, and redirection for China-facing and wider Asian flows.

Why Portfolio Players Care

→ Shorter, more flexible routing from Pacific supply sources
→ Buffer capacity close to PNG and Australian feedgas
→ Timing optionality in volatile JKM and regional markets
→ Physical complement to Singapore's financial and OTC depth

PNG LNG is About to Double

Papua LNG (~6.0 MTPA) is coming online. Combined with existing PNG LNG, the system reaches ~12.9 MTPA by 2028–2029. China-facing volume can roughly double.

TODAY

6.9 MTPA

Current PNG LNG output

2028–2029

~12.9 MTPA

Combined system capacity

LAE OPPORTUNITY

0.5–1.5 MTPA

Buffer throughput (Phase 1–2)

Your Curve-Neutral Buffer

One location. Two market conditions. You win in both.

Contango Hold

Store when the market is weak. Release into stronger forward periods. Earn storage fees while waiting for better pricing.

Backwardation Velocity

Move fast when prompt prices are strong. Fast jetty turnaround and redirection. Minimize costly inventory time.

Attractive Risk-Adjusted Returns

Phase 1 Economics

CAPEX: ~US$1.0–1.1B
Target IRR: 12.5–14.0% (base, levered)
Payback: 9–11 years
Revenue model: Fee-based (storage + transshipment)

Why It Works

Lower construction and operating costs than Singapore. SEZ incentives on State Lease land. Strong China buffer premium. Resilient fee income in both market conditions.

Indicative / screening-level only. High-level only per Document Sharing Gates (044). Full detail post-NDA.

Phased. Disciplined. Scalable.

Commercial proof and anchor MSAs before FID-scale build. SEZ licensing and State Lease tenure secured in Phase 0.

PHASE 0

2026 – H1 2027

Site option, SEZ licensing, partner alignment, regulatory path. Low capital entry to secure the position.

PHASE 1

2027 – 2029

Two tanks + dedicated jetty. First buffer operations. 0.5–1.0 MTPA throughput. Real revenue begins.

PHASE 2

2029 – 2030

Scale to 0.8–1.5 MTPA. Expand bunkering and transshipment. Move toward steady-state hub economics.

Phased per commercial proof. High-level only per 044 gates. See SSOT for full details post-NDA.

Ready to Secure the Buffer Position?

China is moving. PNG policy is aligned. The physical asset is ready to be built. Qualified partners can explore how Lae fits their Asia-Pacific strategy.

Start the Conversation

Confidential discussions for qualified partners only. High-level screening only per Document Sharing Gates (044).