07-09-2012, 03:40 AM
At the AGM I asked Collin about the idea of PNG not wanting Exxon to be the winner asked on the idea of them having too much "power" or a sort of monopoly. Collin blew that notion off very quickly with a half laugh and a "No, that's. It an issue." They do want Petromin to have diverse partners, but in a way they already have that. Petromin does not just work in the O&G industry. Also the O&G sector is still fairly immature. There will be ample time for Shell and others to partner with Petromin. Right now it is crucial for the financial future of PNG that the first two LNG projects are sizeable and come to fruition. If the first 2 end up bring Exxon driven, so be it.
On the issue of startup volume it seems from the government's standpoint the real issue is that volume from these first two projects in total is what's crucial. Exxon also has a bit of an issue as their project was approved for the 6.6 mtpa and 2 trains. Yet they are pressing ahead toward 2 more trains. So if Exxon were to come and say that they will be an upstream partner and work with JKM, might the government approve the CSPs to be built, the conditioned gas to be sold to EXXON, the condensates to be barged to the refinery with the understanding that a stick plant/Mitsui modular and port is to be built in Gulf? There is at least one spur in that Exxon pipeline already. The Gulf people might raise a stink about initial production not being in Gulf (except the CSPs), but the original PA said LNG would be produced at Napa Napa.
Lots of scenarios could work for PNG and Gulf given the right partners. We should know before long. Then of course we have the Tri/Bwata discoveries. Where will that gas go?
On the issue of startup volume it seems from the government's standpoint the real issue is that volume from these first two projects in total is what's crucial. Exxon also has a bit of an issue as their project was approved for the 6.6 mtpa and 2 trains. Yet they are pressing ahead toward 2 more trains. So if Exxon were to come and say that they will be an upstream partner and work with JKM, might the government approve the CSPs to be built, the conditioned gas to be sold to EXXON, the condensates to be barged to the refinery with the understanding that a stick plant/Mitsui modular and port is to be built in Gulf? There is at least one spur in that Exxon pipeline already. The Gulf people might raise a stink about initial production not being in Gulf (except the CSPs), but the original PA said LNG would be produced at Napa Napa.
Lots of scenarios could work for PNG and Gulf given the right partners. We should know before long. Then of course we have the Tri/Bwata discoveries. Where will that gas go?