If there are new LNG Projects...

[Tree]

they will be in PNG.

Just need the BoD's and Bankers to see it this way.

'Cost cutting' has been the TOT buzz phrase.

1)    http://www.smh.com.au/business/energy/lng-200b-worth-of-australian-projects-probably-not-breaking-even-20150906-gjggi0.html

2)    http://www.bloomberg.com/news/articles/2015-09-09/woodside-s-8-billion-oil-search-bid-targets-lower-costs-in-png

[Tree]

1) http://www.smh.com.au/business/energy/ln...jggi0.html

2) http://www.bloomberg.com/news/articles/2...sts-in-png

[admin]

Thanks for that. Apart from cost, there is also a bit of a game of chicken in this. The market cannot support all new proposed projects (to put it mildly). Who'se got the balls to go ahead anyway? Timing is also quite important, I think it's actually important they hurry up. You see similar dynamics in other big fixed-cost industries.

[jft310]

It should be clear costs can be reduced . Phil and Henry had costs at $750 now that's not going to happen but does show there is fat in plant building costs .

When others can't proceed because of low LNG prices , their projects don't work the strong low cost projects can proceed taking advantage of the need of the construction companies to get work any work .

Energy prices can't stay low forever . The day of reconning is coming as the High Yield market closes for certain oil and gas companies . Further the hedges on higher prices expire , end in 2015 for most producers . Most important the amount one can borrow in the oil and gas business gets adjusted every year around November as asset values based on commodity prices get adjusted this time downward . Some will declare bankruptcy , put themselves up for sale . Production will drop because it has to drop . And in time the cycle starts again .
These Super Majors have seen this cycle of prices 7 times . They know what to do in down cycles that's why they are Super Major's.
Say what you want about Interoil but the Hession deal was cut at the right time can't replicate that deal today with multiple payments partially based on exploration success. Unheard of deal . The refinery was sold at the right time eliminating debt .
Total has been selling assets well before oil and gas prices dropped .
These are smart persons who want to make money off what Phil found . They will . The costs are so low , the asset so large it has to happen .

[Getitrt2]

Great stuff, Tree. Good indirect boost for Papua LNG. Thanks.

[jft310]

Stone throwing accomplishes exactly what ??Understand your frustration!!!

[admin]

Thanks for that. Apart from cost, there is also a bit of a game of chicken in this. The market cannot support all new proposed projects (to put it mildly). Who'se got the balls to go ahead anyway? Timing is also quite important, I think it's actually important they hurry up. You see similar dynamics in other big fixed-cost industries.

That kind of language has repeatedly been determined by your good self to be unacceptable when posted by others, resulting in purges with no PM to explain the rationale.

I can think of some words that describe such action ... hypocrite is one that comes to mind.

It's not my fault you cannot see the difference, Stavros so perhaps I should explain, once again, but now in public.

I asked: "who got the balls to go ahead?" This clearly refers to proposed LNG projects, not fellow posters here, as you have a habit to address them in disrespectful language that doesn't add, and in fact detract quite a lot. Examples even today, even above, needless to say..