PNG is the lowest cost LNG

[Gator]

Total suggested the

U.S. is among the most

competitive sources for its

Japanese liquefied natural

gas shipments, given a

$10 per MBTU breakeven

point. Low operating costs,

due to cheap U.S. gas and

economies of scale driven

by the abundance of the

commodity, are the key

reasons. Only Papua New

Guinea's project, involving

Exxon Mobile, Total, Oil

Search and Interoil, offers

potentially better economics,

according to the French oil

major at the European Gas

Conference.

[cybersssss]

Nice find gator.

Thank you for posting

[ArtM72]

I assume that chart shows gross cost for PNG to be $9-2.50 associated liquids = $6.50. Is that correct?

[jft310]

Using these numbers its not just the liquids that lower the costs but the gas location dynamics . Its what we bulls have been saying for years. Total now proclaims it to the world.

[Getitrt2]

Great find, Gator.

You got it right, jft. That's probably with a greenfield plant built from scratch, and does not mention Total's plant will likely be at lower cost than PNG LNG.

[cybersssss]

Economics would be even better with brownfield expansion.

Good stuff. We need to hear what the plans are. Lot of new developments. O'Neil has taken a huge political risk by his investment in Oil Search. You better believe he needs this to pan out for his political future. He has 9 months left until his no-confidence vote can be placed. I think he wants a definite plan by then.

[jft310]

Hope everyone noticed our new partner EXXON in this press release.

[jft310]

Quote. Only Papua New

Guinea's project, involving

Exxon Mobile, Total, Oil

Search and Interoil, offers

potentially better economics,

according to the French oil

major at the European Gas

Conference.quote

interesting Bloomberg quotes Total and uses the word Exxon with the singular use of the word project.

Could be a mistake but Total is not prone to making mistakes. We will  know soon enough.

[katytrader]

Quote. Only Papua New

Guinea's project, involving

Exxon Mobile, Total, Oil

Search and Interoil, offers

potentially better economics,

according to the French oil

major at the European Gas

Conference.quote

interesting Bloomberg quotes Total and uses the word Exxon with the singular use of the word project.

Could be a mistake but Total is not prone to making mistakes. We will  know soon enough.

I think it is more likely  that the reporter used Total's chart to generate his text.  He did not quote Total.  Also note that this presentation was made at the end of January, so it would be unlikely that Total was talking about a single project with that array of companies.

katytrader

[jft310]

Katy-you may well be right but not for the reasons you state. The Total slide does not mention any participants names. Exxon was announced in May 2013 to the PNG Paliament by the Prime Minister to a standing ovation. This is far from an announcement but does add more luster to the Botten comments. Or it increases the odds we end up with 2 Super Majors. The words used are these fields are "huge" if thats true the possibility for 2 Super Majors is high . We will know soon.