02-06-2014, 08:27 PM
IOC proposed the Bluff site in 2011 as part of the changed Project Agreement. Since MH took over the helm, IOC went back to the original Project Agreement. During the roadshow Port Moresby was mentioned as location. By doing so the management avoids that an amended project agreement becomes necessary.
Moreover, it remains to be seen if the Bluff site is cheaper to realize than the Port Moresby site. Of course IOC will save approx 1B on the pipeline. However, the LNG plant construction becomes much cheaper with direct flight connection in Port Moresby. Furthermore, they do not need to build a jetty in PM, savings 0.5 B.
Moreover, it remains to be seen if the Bluff site is cheaper to realize than the Port Moresby site. Of course IOC will save approx 1B on the pipeline. However, the LNG plant construction becomes much cheaper with direct flight connection in Port Moresby. Furthermore, they do not need to build a jetty in PM, savings 0.5 B.