Exxon Stops Work on Papua New Guinea LNG Plant (XOM)

Exxon Mobil Corp. (NYSE: XOM) has stopped work in one location on its $15.7 billion liquefied natural gas (LNG) plant in Papua New Guinea. The stoppage is the result of another dispute with landowners who have reportedly threatened plant workers after demanding additional compensation from Exxon.

Exxon experienced a delay at the construction site in 2009 due to a similar demand from local landowners. The plant, which will produce 6.6 million metric tons of LNG for export, is expected to be in operation by 2014.

The delay affects only an area surrounding a quarry an Exxon representative told Reuters, and work is continuing at other project areas.