Esso Highlands Limited (EHL) operator of the PNG (Papua New Guinea) LNG Project report project capacity increased by 5%. The increase has been achieved through system-wide optimisations as well as some minor modifications. Progress is being achieved across all parts of the project. Drilling is under way on two production wells, the offshore pipeline has been completed, all major process equipment for the LNG plant and all pipe rack modules on the LNG jetty have been installed, all piling is complete and foundations are under way at the Hides Gas Conditioning Plant. The Project remains on track to achieve start-up in 2014.The estimated Project cost has increased from $15.7 billion to $19 billion (excluding Port Moresby administration facilities and shipping).