Structuring an LNG project; 3 basic ways, which will we see?

[Petrovale]

If the world is so desperate for energy, it's beyond me that the preferred business model hasn't been sold yet.
But, if you have ever met a troll, you know that it can travel much faster than a toad, if it wants to...

[ArtM72]

The Holmberg article did a really nice job of "simplifying" the options relative to partner selections. There remains little question in my mind how difficult these negotiations have been for IOC. The "simple" introduction of PNG's desire to acquire the additional 27.5% when they are both broke and want an integrated project structure had to turn everything on its head. How do you do that when the (future) majority interest can't control over 50%? Somebody walks in to IOC's office with $15 billion cash, gives PNG $3.4B for its 22.5%, then PNG gives that money back to acquire the 27.5% free and clear? Huh?

The trolling option (LOL) has some promise, but again, where is PNG going to get the money to buy tolling capacity even if IOC executes a no money down agreement with PNG for an additional, say, 2 TCF over 20 years? A resale agreement with an arbitrage profit funding mechanism still seems to be about the only viable approach for PNG to both acquire capacity and pay for it .

Even conceptually (forgetting the details for a moment) these are difficult problems to solve. The thought struck me the three investment bankers involved in these negotiations have let their friends know, one way or another, to keep selling calls because "the deal" won't be happening any time soon. Hope I'm wrong. The only thing that's encouraging is the apparent public silence of the parties at the table.

My hope? PNG backs off the 27.5% additional ownership demand. If they are truly concerned about a supply of natural gas for the country's future they should step back, take a deep breath, click their heels three times and say "tri-cer-a-tops". That little dinosaur should supply an ammonia plant or two pretty effectively I'd guess. Maybe even a cement kiln. LOL.