Goldman on PNG LNG

[bix]

Canada, Australia

Several projects in Canada and Australia will probably face deferrals due to uncertain production costs and price-sensitive buyers, according to Goldman. Papua New Guinea has perhaps the lowest risks as it expands LNG production, the bank said.

“Outside of the U.S., we believe Papua New Guinea and East Africa may be the best placed regions to compete on cost competitiveness,” Goldman said. “Given the industry’s renewed focus on capital discipline in recent times, we are observing a number of high-cost LNG projects deprioritized in the investment queue by major companies such as Chevron, Royal Dutch Shell, BG Group, ExxonMobil

[jft310]

If PNGLNG is low cost wait till they see the Gulf LNG costs, no mountain range to traverse , no billion $ airport, much shorter pipeline etc. Analyst state $3.5 Billion cheaper for Gulf vs PNGLNG . Falls into the area of real money.

[mikesioc]

Enough of a cost savings to buy IOC. The inevitable destiny. UBS still restricted. With GS on the $ trail and Bernie making a special note of a buyout the time is quickly arriving.