'admin' pid='22731' datel Wrote:Yes, there are little worries about price competitiveness for InterOil, although if US shale gas is going to be exported in serious quantities it could depress prices a bit, but that goes only so far as it would be hard to sell US shale gas below $10/mcf (henry hub + liquefaction + deliquefaction + transportation + tolls).
If they just add transportation cost to the Henry Hub price I think this delivery cost to Japan is too low. They left out the cost to Liquefy the gas. I don't know what that number is but the LNG Plant costs billions of dollars and the operator must be able to recover his investment cost plus the cost of running the operation plus, hopefully, make a profit. How about adding about another $6/MMBTU? That would bring the delivered cost to about $15.50-$16.00/MMBTU.