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Press release

Volvo to supply 125 machines to Papua New Guinea oil and gas project

In an important deal for the region, Volvo Construction Equipment will supply a fleet of 125 machines to support a liquid natural gas project in Papua New Guinea – after signing contracts for two subprojects.

The Papua New Guinea liquid natural gas project (PNG LNG) will provide energy for the Asia-Pacific region, jobs, and economic benefits for Papua New Guinea. The project will develop gas and liquid hydrocarbon resources located in the country’s southern highlands and western province, and transport the gas via pipeline to a LNG facility for shipment to overseas markets.

“This is an exciting time for Volvo Construction Equipment,” says Volvo’s International Region Vice President, Sales and Commercial Management, Kjell Carlsson. “It is the first deal of its kind for us in the region and we are very pleased to be involved in such an important project for the country.”

The first 55 Volvo machines – mostly articulated haulers and excavators – will go to the first sub project run by MCJV to build an Airfield at Komo to access the country’s undeveloped Juha region. MCJV is a joint venture between Australian company MacDow and Greek company CCC. A further 70 units – mostly articulated haulers and pipelayers – have been signed to another contractor to help build a Pipeline to transport the gas.

Both customers are leaders in the oil and gas industry and the deal is a breakthrough for Volvo Construction Equipment in this segment.

The Komo Airfield lies approximately10 km south east of the Hides Gas Conditioning Plant and will provide access to the area for the liquid gas project. MCJV will use 21 Volvo A40E and A35E articulated haulers, 14 EC700B and EC460B Prime excavators, and six L180F and L150F wheel loaders – along with Volvo graders, rollers compactors and backhoe loaders – to build the airfield.

Supported by Volvo service professionals, machines will also build 21km of road between the airfield and the Hides Gas Conditioning Plant (HGCP), two bridges for heavy load transport on the HGCP road, and upgrade 20 km of existing road to support construction. The project will commence in a few weeks.

For the Pipeline sub project, 45 Volvo A30E articulated haulers, seven PL4611 pipelayers – and graders, wheel loaders, rollers and backhoe loaders – will be delivered between May and July. They will help to construct the pipeline, which will transport gas from the country’s southern highlands and western province to the LNG facility.


Tiffany Cheng

Head of Brand, Marketing and Corporate Communication
Regions Asia and China
Volvo Construction Equipment

Åsa Alström

Head of Strategic Communications
Volvo Construction Equipment