Papua New Guinea Liquefied Natural Gas Project (PNG LNG), Operated by Esso Highlands Limited (EHL), a Subsidiary of Exxon Mobil Corporation

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Papua New Guinea Liquefied Natural Gas Project (PNG LNG), Operated by Esso Highlands Limited (EHL), a Subsidiary of Exxon Mobil Corporation Uncharted wilderness: a detailed program for protecting biodiversity while developing liquefied natural gas infrastructure in one of the world’s least explored regions Papua New Guinea Liquefied Natural Gas Project (PNG LNG), operated by Esso Highlands Limited (EHL), a subsidiary of Exxon Mobil Corporation Identification of the relevant tip(s) associated liquids from new and existing wells in the Tip 4: Consult openly Southern Highlands and western provinces of PNG. The Engage in open dialogue with a diverse group of interested liquids will be separated and transported via the existing stakeholders. This is an effective means of leveraging crude oil export pipeline to the Kumul Marine Terminal local ecological knowledge, understanding the value of in the Gulf of PapuaAlien for export, while invasive the dry gas will traditional ecosystems, learning how natural resources are be transported in a buried pipe from the highlands to the used and avoiding potential resource conflicts. Gulf of Papua, then undersea to an LNG plant near Port Moresby where itspecies will be liquefied and shipped to andcustomers the oil Biodiversity Tip 7: Understand interdependence in Asia. The Project is operated by EHL on behalf of itself Conduct early, high level screening of project dependencies and co-venturers.and It will be developed gas in six phases industry over to identify risks related to resource competition. Ecosystems a period of 16 years, with first LNG deliveries scheduled do more than support wildlife: for example, resources such for 2014. Phase I of the Project (Initial Development and as land and water may be critical to the operation of oil Drilling) is under Guidanceconstruction as offor August prevention 2012. and management and gas facilities in addition to their contribution to habitat and community needs. Tip 9: Make your benefits mutual Understand social and economic needs and potential impacts to find solutions that integrate ecosystem health with human well-being and economic progress. This should minimise conflict between socioeconomic development and conservation goals. Executive summary Esso Highlands Limited (EHL), a subsidiary of Exxon Mobil Corporation, is the operator of the Papua New Guinea Liquefied Natural Gas Project (PNG LNG), which includes gas production and processing facilities, liquefaction and storage facilities, and more than 450 miles of related pipelines. As part of the development activities related to the project, EHL has developed a Biodiversity Strategy, which outlines how PNG LNG has and will continue to manage terrestrial biodiversity in its Upstream Project Area. As part of this Biodiversity Strategy, EHL is also developing an extensive technical rationale for biodiversity offset selection, scoping potential offset areas, activities and partners and assessing the feasibility of a number of options to implement the plan. Background The Papua New Guinea Liquefied Natural Gas (PNG LNG) project will involve production of natural gas and Figure 1. Location map and YUS Conservation Area Project. Other than the LNG Plant which is located in the National Stakeholder engagement will continue to be a key Capital District of Port Moresby, the Project is primarily component of EHL’s planning and decision making for located in the Kikori River Basin. This area is termed the biodiversity management. It should be noted that limited Upstream Project Area and spans the Gulf Province in the engagement has so far been undertaken with community Papua Region and the Southern Highlands Province and stakeholders. Extensive consultation and engagement (new) Hela Province in the Highlands Region (see Figure 1). with communities is planned during, and as the basis for, implementation of EHL’s offset program. Approximately one-third of the new onshore pipelines in the Upstream Project Area will be co-located within existing EHL’s Biodiversity Strategy draws extensively on the pipeline corridors. The Upstream Project Area is known PNG LNG Project Environmental Impact Statement (EIS) for high biodiversity values and is the site of the Kikori and its Environmental and Social Management Plan Integrated Conservation and Development Project (KICDP, (ESMP). These in turn relied on biodiversity impact and now called the Kikori River Program), a WWF conservation management analyses of field data collected by WWF in initiative supported initially by Chevron Asiatic Ltd and then its KICDP initiative and new surveys carried out by EHL by Oil Search Limited. from 2005 to 2009. Activities The Biodiversity Strategy is designed to align with PNG Consultation is a key component of EHL’s planning legislation, International Finance Corporation (IFC) for biodiversity and is essential in order to maintain Performance Standard 6 and ExxonMobil policy. transparency and develop good working relationships with stakeholders. To date, EHL has met, in many cases on several The Biodiversity Strategy defines biodiversity values in occasions, with the following organisations: Conservation the main area of EHL’s operations, termed the Upstream International (United States and PNG), Ecoforestry Forum Project Area. These values have been defined at three PNG, Environmental Law Centre PNG, Institute for Applied scales: the large scale, which is the entire Upstream Ecology (University of Canberra), Institute of Biological Project Area; the medium scale, which is represented by Research (IBR) PNG, Mama Graun Conservation Trust particularly valuable areas termed priority ecosystems; Fund PNG, New Guinea Binatang Research Centre and the local-scale which are sensitive habitats referred to PNG, Partners With Melanesians Inc., Peace Foundation as focal habitats. Melanesia, PNG Conservation Forum, Research and Conservation Foundation of PNG, Tenkile Conservation Based on the surveys conducted over the past 15 years, Alliance, The Nature Conservancy (Unites States and PNG), biodiversity values have been defined for the Upstream Wildlife Conservation Society PNG, Woodlands Park Zoo Project Area as: (Seattle), World Wildlife Fund Western Melanesia (PNG) • Extensive intact forest. Figure 2. The Mitigation Hierarchy • High floristic diversity. pre-construction surveys undertaken during Project • High faunal diversity. construction. • Endemic species. To achieve these objectives, avoidance, mitigation and • Unique assemblages of species. monitoring of impacts on biodiversity values will be • Species of conservation concern. implemented at three levels: (i) large scale, which is the • Biodiversity of importance to local communities for entire Upstream Project Area; (ii) medium scale, which is resource use and cultural and spiritual purposes. represented by particularly valuable areas called ‘priority ecosystems’; and, (iii) small local-scale focal habitats. The overall goal of the biodiversity strategy is to retain the biodiversity values of the Upstream Project Area on a Outcomes regional scale for the long term. To achieve this goal, EHL Avoidance of impacts on biodiversity in the Upstream has adopted a series of objectives at several scales. These Project Area has been factored into feasibility, planning objectives are to: and design since the Project’s inception. In practice, this • Maintain the ecological intactness of the Upstream has meant considering avoidance measures at discrete Project Area as a whole – the long-term maintenance phases of the Project and at discrete scales, the latter of biodiversity requires long-term functioning of the within the Upstream Project Area aligning with the ecosystems in the Upstream Project Area. This objective identified three scales of biodiversity values. The primary is realised by mitigating potential Project related avoidance measures involved optimisations undertaken impacts capable of system-wide effects on function during the selection of sites for Project facilities and onshore such as invasive species, fire and uncontrolled access pipeline routing. These measures are described in detail leading to wide-scale deforestation and defaunation. in the Environmental Impact Statement and summarised in the Biodiversity Strategy. Avoidance of impacts to • Conserve priority ecosystems – some project biodiversity values continues during Project construction, infrastructure will be built within the priority ecosystems through implementation of the Environmental and Social and therefore it is necessary to mitigate Project related Management Plan. impacts during construction. In some cases this requires changes to Project design and the development of In particular, the following components of the ESMP are specific mitigation measures and will require ongoing relevant to the protection of biodiversity: management and control during operations. • Protect focal habitats – focal habitats are avoided or • Ecological Management Plan – the overall objective otherwise managed during construction to prevent the of this plan is to avoid where practicable and reduce reduction in a population of a critically endangered or impacts on terrestrial, aquatic and marine habitats and endangered species. specific habitat features of ecological importance. • Account for residual impacts – impacts to biodiversity • Weed, Plant Pathogen and Pest Management Plan – values which cannot be avoided or otherwise mitigated the objectives of this plan are to prevent exotic invasive (residual impacts) and losses will be accounted for species from entering or becoming established in the through offset. Project Area, and to identify, contain and suppress priority
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