SK LNG imports up 30% YOY

[Palm]

South Korea reported a huge 30% increase in mported LNG in November compared to last year. That's huge.

South Korea: LNG Imports Up in November

Posted on Dec 17th, 2012  with tags Imports, LNG, News, November, South Korea, Up  .

South Korea imported 3 million tonnes of LNG in November, up 30% from the same month in 2011, customs data showed.

The country  imported 2.70 million tonnes of LNG in October.

South Korea paid $2.02 billion for the LNG imported in October, compared with $1.62 billion a year earlier.

http://www.lngworldnews.com/south-korea-...-november/

[Tree]

"Now, if you were those guys, JP and SK, and were totally dependent on imported LNG for your energy security and there was this huge resource nearby, several sailing days closer which was also the lowest cost producer of any project available with a -$.84/mmcf gas cost what what would do?"

(hint: suck up to PNG Gov't, offer infrastructure funding, align with each other to attempt to cap bidding pressure)

[Palm]

And that LNG does not have to pass through Straits of Malacca.
http://www.e-ir.info/2012/09/07/the-impo...f-malacca/

[Tree]

Well, ask yourself:
'Why did JP and CH immediately go into PNG LNG and buy up almost all of that LNG? Is it because they like XOM so much?'
Or is it they understood something?

[Palm]

Well, several reasons. But mainly:
1. XOM saw an opportunity to be first in and gain advantages of that title.
2. China and Japan saw the advantage of having XOM jumping in; they would be a little more willing to bargain a little on price
3. The world economy was in the middle of tanking and pricing was very good
4. Not having to deal with shipping product through the Straits of Malacca is very important especially to the Japanese. This on top of not having to deal with the Strait of Hormuz makes getting LNG and condensate products much safer and less expensive.
5. Jumping into PNG early helps secure an in for the future should everything play out as expected
6. #5 gives more access to other opportunities like mining and infrastructure projects for Japanese and Chinese companies.

Opportunities abound in PNG

[Tree]

Well, it sounds like PNG is a home to strategically advantaged gas. Even PNG LNG gas with a $7+- mmcf dry gas cost at the plant is considered 'tie it up' worthy. I'd think a bigger resource with tremendous likelihood of exploration upside would attract similar interest.