08-20-2016, 02:26 AM
'Li'loilady' pid='75827' d Wrote:
'Stavros' pid='75826' dateline='<a href="tel:1471597 Wrote:TOTAL wants to delay as long as possible to put all payments into 2017 when they have some CA$H. JFT has repeatedly (and correctly) reminded us that XOM sanctions LNG projects based on P1 certifications (ie 90% probability) rather than P2 (50% probability). It's my opinion that if XOM wants to sanction 2 trains (plus gas for a 10% expansion of the existing 2 PNG LNG trains), they want to see the P2 certification of E/A at close to (or even over) 10 Tcfe.
Interesting. What about the theory that Exxon wouldn't want to pay us $1.4 billion for 10T's now and therefore not gain that at final cert.? That theory includes the assumption that their internal engineers will know what's in the ground.
I believe that Exxon wants a good certification number to use for its financing of the expansion/construction of 2 trains. It also wants a high enough number to use in the marketing of the gas in the current low-price market to long-term buyers. It will need those buyers lined up when it goes to the IBs for its financing loan.