03-17-2014, 04:50 AM
'cybersssss' pid='39279' dateline='<a href="tel:1394993 Wrote:I may be of dissenting opinion but to me it makes no sense to sell has to pnglng if we are pursuing a greenfield LNG project in the gulf. The more trains at a gulf LNG plant the more profitable it is. Why build two when you can build three. With that I do think that it makes the most sense to just expand png LNG with train 3,4,5 and have participation in that. Most economical and speediest.
It all depends on time value of money and market assumptions on gas prices vs time and capacity constraints and time to build a new plant and it's cost vs simply expanding XOM Lng plant and gathering system among other factors. The highest profit opportunity for all may be to keep expanding the XOM plant up to 8 trains if they can arrive at an agreement. That path seems most capable of getting the most gas to market the fastest at the lowest cost. They all know this and likely are evaluating (especially. XOM) the alternative scenarios. XOM likely has the most to gain if they can't find other gas sources. With each new discovery for IOC any deal with XOM will look less appealing.