Wood awarded $200 million five-year construction contract for ExxonMobil’s PNG LNG project

Wood just landed a US$200 million, five-year construction services contract with ExxonMobil PNG. The work supports brownfield operations across the PNG LNG project in Papua New Guinea — a sprawling infrastructure network running from the Hides gas conditioning plant to roughly 435 miles of pipeline that feeds LNG supplies to customers across Asia.

Wood wins $200 million ExxonMobil PNG contract

ExxonMobil PNG awarded Wood the contract in September 2026, renewing a relationship that goes back more than a decade. At US$200 million over five years, it ranks among the more substantial long-term construction services deals in the region — and it puts Wood squarely at the center of keeping one of Asia-Pacific’s key LNG supply chains running through the end of the decade.

This is brownfield work. Wood isn’t building something new; it’s maintaining, upgrading, and delivering construction services across existing infrastructure. That distinction matters more than it might seem. Brownfield work on active LNG facilities means construction crews operate alongside live plant systems, coordinating closely with operations teams at every turn. The margin for disruption is narrow, and operational awareness isn’t optional — it’s the baseline.

The contract covers the Hides gas conditioning plant in the highlands, the LNG plant at Caution Bay on the coast, and roughly 435 miles of pipeline connecting them.

Scope of work across PNG LNG infrastructure

The scale here is significant. The contract covers the Hides gas conditioning plant in the highlands, the LNG plant at Caution Bay on the coast, and roughly 435 miles of pipeline connecting them. Well pads and flowlines — the upstream infrastructure that moves gas from the reservoir into the processing and export chain — are part of the picture too.

More than 200 Wood personnel based in Papua New Guinea will carry out the work, spanning project management, civil and structural construction, piping, mechanical works, electrical services, and instrumentation. That’s a broad technical footprint for a single contract team.

Scaffolding, lifting, and rigging round out the scope. Less glamorous, certainly, but operationally critical. These services are what make it possible to safely access equipment, execute maintenance lifts, and do the hands-on work that keeps large industrial plants functional year after year.

Maintaining safe and reliable LNG supply to Asia

The PNG LNG project is a significant source of LNG for customers across Asia. Keeping that supply consistent takes more than operational management — it takes ongoing construction activity to sustain asset integrity and address the wear that accumulates over years of continuous operation.

Wood’s role under this contract ties directly to that reliability goal. In LNG terms, an unplanned outage or infrastructure failure doesn’t just affect one facility. It can ripple through supply commitments to buyers across multiple countries, with real commercial and reputational consequences for the project’s operators.

Steve Nicol, Wood’s Chief Operating Officer of Operations, put it plainly: “By providing quality construction services, we will play an important role in maintaining and enhancing critical facilities that underpin the PNG LNG project’s infrastructure.” He added that Wood’s teams are focused on sustaining asset integrity and applying their experience to ensure the facilities “continue to run reliably and safely.” LNG supply contracts with Asian buyers are typically long-term arrangements, which means the stakes attached to that reliability aren’t abstract.

Wood’s decade-long presence in Papua New Guinea

Wood’s history with ExxonMobil PNG stretches back more than ten years — and that continuity is worth noting. Long-term relationships in complex, remote operating environments like Papua New Guinea don’t happen by accident. They require sustained investment in local knowledge, workforce development, and supply chain relationships that take years to build.

Nicol acknowledged that history directly: “For more than a decade, we’ve supported ExxonMobil PNG to deliver safe and reliable PNG LNG project operations.” The new five-year contract extends that track record, giving Wood a runway through the late 2020s on one of the region’s most consequential LNG assets.

Wood has also signaled a commitment to Papua New Guinea’s broader economic development, working with local supply chain partners and communities with an explicit focus on developing a skilled national workforce. In resource-rich but infrastructure-challenged countries, that kind of local capacity building carries real weight — for the communities involved and for the long-term sustainability of the project itself.

Building on more than 10 years of Wood’s presence

Wood Group has secured a US$200 million, five-year deal with ExxonMobil PNG to deliver brownfield construction services across the PNG LNG project. The scope covers the Hides gas conditioning plant, the Caution Bay LNG plant, and approximately 435 miles of pipeline infrastructure, including well pads and flowlines.

Over 200 Wood personnel in Papua New Guinea will provide construction services across civil, structural, piping, mechanical, electrical, and instrumentation disciplines — plus scaffolding, lifting, and rigging support. The work is aimed at sustaining asset integrity and operational reliability for an LNG project that supplies customers across Asia. The contract builds on more than a decade of Wood’s presence in the country and includes a commitment to local workforce development and community engagement throughout its duration.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.