06-27-2013, 03:07 AM
Also from Wood Mackenzie on IOC/XOM:
* We would expect it (XOM) to focus marketing efforts on an operated expansion position in PNG, rather than the higher-cost and more technically challenging projects in Australia. This would make PNG LNG one of the biggest and most profitable LNG projects in the region and generate significant additional value to both the PNG LNG partners and the government.
* PNG LNG will increase PNG GDP by 20% - before expansion.
* The opportunity to build on it's gas export business is vital to the longer term outlook of the PNG economy.
* 3rd train expansion saves downstream capital expenditures of 15%, 4th train 20%. (The upstream savings of a negative gas cost, -$/Mcf, opposed to ~$3/Mcf PNG LNG feed aren't even mentioned)
* Curent JCC prices equated to LNG sales prices of US $15.7/Mcf.
* We would expect it (XOM) to focus marketing efforts on an operated expansion position in PNG, rather than the higher-cost and more technically challenging projects in Australia. This would make PNG LNG one of the biggest and most profitable LNG projects in the region and generate significant additional value to both the PNG LNG partners and the government.
* PNG LNG will increase PNG GDP by 20% - before expansion.
* The opportunity to build on it's gas export business is vital to the longer term outlook of the PNG economy.
* 3rd train expansion saves downstream capital expenditures of 15%, 4th train 20%. (The upstream savings of a negative gas cost, -$/Mcf, opposed to ~$3/Mcf PNG LNG feed aren't even mentioned)
* Curent JCC prices equated to LNG sales prices of US $15.7/Mcf.