New route seems to be opened up, in the form of a floating LNG facility. This is tremendous news…
DECEMBER 19, 2010, 2:01 P.M. ET
Daewoo Shipbuilding Unit Joins $3B Papua New Guinea LNG Project-Source
SEOUL (Dow Jones)–South Korea’s Daewoo Shipbuilding & Marine Engineering Co.’s (042660.SE) will build an LNG floating, processing, storage and offloading facility for $2.1 billion in a Papua New Guinean project worth about $3 billion, joined by its energy-exploring subsidiary and two companies, a person with direct knowledge of the matter said early Monday.
“Papua New Guinea, as an island nation with future offshore potentials, is introducing the LNG-FPSO technology for the first time to develop and commercialize gas reserves in the country,” the person told Dow Jones Newswires by telephone.
Daewoo Shipbuilding & Marine Engineering Energy & Resource, or DSME E&R, will operate the LNG FPSO together with Papua New Guinea’s state-run oil, gas and minerals company Petromin PNG Holdings and Norway’s Hoegh LNG after its parent Daewoo Shipbuilding builds the floating LNG-production facility, he said.
“The offshore plant will have a production capacity of up to 3 million metric tons a year of LNG, which is equal to 15% of South Korea’s annual gas demand,” said the official.
He said more details about the project will be available in a joint statement to be released by the three “partners” on Monday.
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How do we know InterOil is involved? Two things:
- Petromin, IOC’s partner and future holder of 20.5% of Elk/Antelope has an earlier preliminary agreement with these companies
- OilSearch/Exxon is already embarking on a land-based big LNG plant. The only alternative would be Talisman, which entered PNG by taking over Rift Oil, but we’re not aware of any floating LNG plans by them.
So it should be an interesting day tomorrow for IOC shares.