11-13-2012, 04:12 AM
Here's Exxon's explanation:
""Despite the cost increase, project economics are helped by the 5% increase in plant capacity and approximately 30% increase in commodity pricing since project funding in 2009," Exxon said in a statement."
This may hold for today as it does for IOC as it's realized benefit from rising LNG pricing, but that has now leveled off. Should LNG prices drop, IOC is in a much better position to absorb a drop than PNG PNG.
""Despite the cost increase, project economics are helped by the 5% increase in plant capacity and approximately 30% increase in commodity pricing since project funding in 2009," Exxon said in a statement."
This may hold for today as it does for IOC as it's realized benefit from rising LNG pricing, but that has now leveled off. Should LNG prices drop, IOC is in a much better position to absorb a drop than PNG PNG.