10-07-2015, 10:05 PM
There are distinct advantages of being a low cost provider . Especially if the bar is US gas . Compared to Gladstone and Prelude the Papua Plant prints money . Dec 2016 Henry Hub is $3.05 today .Cheniere Energy owns no gas buys at Henry Hub rate . Oil Search paid PACLNG 77 cents per MCF . Total appears to be on tract to pay Interoil $1 per MCF . Or Papua has a gas cost advantage of at least $2 per MCF . US gas costs @$3 to transport to say Japan vs Papua LNG at under 50 cents per MCF .
Interoil states their cost is estimated to be under $7 per MCF . US gas has to land over $10 per MCF . The difference is over $3 extra profit per mmbtu delivered . Even at these prices see above the Austalian projects make money . Hession states at these prices Papua LNG had a 22 percent return on investment .
Papua Project gets built and others will suffer lower margins . Not our problem .
Interoil states their cost is estimated to be under $7 per MCF . US gas has to land over $10 per MCF . The difference is over $3 extra profit per mmbtu delivered . Even at these prices see above the Austalian projects make money . Hession states at these prices Papua LNG had a 22 percent return on investment .
Papua Project gets built and others will suffer lower margins . Not our problem .