Too Much Gas. Now what?

[bertl05]

Historically, a million tons of LNG fetches at least $650,000,000.

Prices have as much as doubled since tsunami and move from JP nukes.

1 TCF nat. gas produces 21.25 million tons.

Roughly 1 ton/yr per Tcf over 20 yr. plant life.

PRL15 fed Gulf LNG phased to 12 Mtpa production.

Assumption is PRL 15  to deliver at least 12 T's recoverable.

T-2 minimally looks to equal PRL15 - 12 Ts.

Where does that gas go?

Add on 4 Mtpa to Gulf LNG and another couple of 4 Mtpa trains to PNG LNG?

Likely T-2 has much more than E/A, then where does all that go?

Is it sat on and developed over time to feed JP/SK markets?

PNG's deal with IOC is much more lucrative than their deal with XOM.

PNG would be best served to align with and protect IOC and develop these resources with the Co. that's treated them fairly and honorably and will continue to do so.

That protection is the only way IOC can remain a sovereign entity.

China is a likely consumer for the second phase of Ng sales from T2 . Their NG appetite gets more voracious by the day.