05-26-2014, 11:20 PM
I keep worrying about this new found clarity. It may be correct that currently there is no intention to link EA gas to PNGLNG, but as we all know, things keep moving very fast in this industry and until FEED, things can always change.
It appears that China has made a huge deal with Russia for pipeline gas the other day. It also appears that Japan want to restart its nuclear power, starting very soon. Japan is the larges importer of LNG and if its nuclear reactors start up then there will be a huge drop in demand for LNG by them. We could possibly see a drop in LNG prices for a time period in a few years time. I can still foresee the possibility of it being beneficial for both PNGLNG partners and for TOT/IOC/OSH to process E/A gas at PNGLNG if only to lock in contracts and start LNG deliveries earlier than would happen from a new plant and try to catch the higher LNG prices before they may drop. This is all speculation but worth keeping in the back of ones mined.
It appears that China has made a huge deal with Russia for pipeline gas the other day. It also appears that Japan want to restart its nuclear power, starting very soon. Japan is the larges importer of LNG and if its nuclear reactors start up then there will be a huge drop in demand for LNG by them. We could possibly see a drop in LNG prices for a time period in a few years time. I can still foresee the possibility of it being beneficial for both PNGLNG partners and for TOT/IOC/OSH to process E/A gas at PNGLNG if only to lock in contracts and start LNG deliveries earlier than would happen from a new plant and try to catch the higher LNG prices before they may drop. This is all speculation but worth keeping in the back of ones mined.