InterOil, the US-listed company seeking to develop Papua New Guinea’s second liquefied natural gas project, has linked with Sydney-based Energy World Corp to build a medium-sized plant in the Gulf Province.

Under the terms of the accord, Energy World would fully fund the plant in return for 14.5 per cent of the proceeds from the sale of LNG from the project, less agreed deductions. The plant would have a capacity of 2 million tonnes a year of LNG, with a potential later expansion to 3 million tonnes a year.