Reported by the National newspaper, Somare said ExxonMobil started its preliminary logistical preparations for FEED on the strength of the agreement with the State on fiscal terms.
"The terms agreed represent value for the State and address the important issue of accessing the windfall revenue that is currently being enjoyed by the oil and gas industry whilst ensuring that the project proponents receive an appropriate return on what could be a US$10 billion (K27.2 billion) investment." he said.
Somare said he had directed the whole of government to focus on finalising the technical terms so they can execute the agreement.
"I expect that early next month, the State and ExxonMobil and its project partners will be moving into FEED," Somare said.
"Funds have been transferred, people have been engaged and the marketing personnel have begun introducing PNG LNG to the rest of the world."
The $US11 billion PNG LNG project will source gas from the Hides, Angore and Juha fields as well as associated gas from the operating Kutubu, Agogo, Gobe and Moran oilfields in the Southern Highlands and Western Provinces.
The gas will be treated at a plant at Hides before being piped to the liquefaction plant, expected to start production in 2013.
Partner Oil Search says the project will provide a large, stable income source for more than 20 years after the first LNG sales, which are expected in late 2013 or early 2014.
Somare has said that he expects the PNG LNG project to provide momentum and synergies that will help establish other projects.
Technical issues still remain to be finalised with a source speculating this may have to do with the size of the pipeline, in order to provide scope for supply to some other projects besides LNG.
The PNG LNG project ownership consists of ExxonMobil at 41.6%, Oil Search at 34.1%, Santos 17.7%, AGL Energy 3.6%, and Nippon Oil 1.8%. Landowner interests hold the remaining 1.2%.
