The reports were originally published in The Australian then requoted in local PNG paper The National.

The spokesperson said ExxonMobil had shelved contract negotiations with Australian customers until issues surrounding the construction of the Australian leg of the PNG gas pipeline had been resolved, according to a fresh report in The National.

ExxonMobil is still assessing the decision by Australian Gas Light two months ago to quit work on the pipeline.

“We can’t proactively market the gas as we don’t have a pipeline at the moment,” the spokesperson was reported as saying.

“We are still assessing implications of the AGL project and various alternate options are being looked at. We are yet to decide on a definite path ahead.”

ExxonMobil is hopeful it can keep its existing customer base if the PNG gas pipeline project goes ahead.

Oil Search managing director Peter Botten had been optimistic about the chances of a concluding Australian gas contract negotiations by the end of the year, but this now seems “highly unlikely”, The National said.

The ExxonMobil spokesperson said the gas consortium members were yet to reach a uniform position on how they will progress as a group.