Lowest Cost Producer = CAPEX + gas cost - condensate sales

[Tree]

Well JFT, Since Gulf LNG CAPEX + OPEX is $1.67/Mcf and stripping revenues are uber-conservatively $1.54/Mcf kinda looks to me like Gulf LNG facilities are basically free from Condensate sales to IOC's own refinery. Didn't a greedy CEO say that puts an extra billion on IOC's bottom line annually??

Looks like dry-gas shale fed LNG projects don't get 'free' LNG plants subsidised by condensates sales.

**********

Origin Energy's Australia Pacific LNG project in $2bn blowout

• BY:MATT CHAMBERS
• From:The Australian
• February 21, 2013 10:26AM

• http://resources2.news.com.au/cs/austral...-tools.png); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: rgb(244, 243, 240); height: 19px; cursor: pointer; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; width: 27px; border-top-left-radius: 1px; border-top-right-radius: 0px; border-bottom-right-radius: 0px; border-bottom-left-radius: 1px; background-position: 5px 4px; background-repeat: no-repeat no-repeat; " title="Increase Text Size">
  Increase Text 

ORIGIN Energy's Australia Pacific LNG project at Gladstone is the latest Australian mega-project to experience a cost blowout, with estimated development spending jumping almost $2 billion.

Origin, which today also said it was slashing 850 jobs this financial year to cut costs, said a review had increased capital cost estimates of the giant project to $24.7bn, up from $23bn announced when a second stage was approved last June.