Chevron secures gas for Australia LNG export plant Thu Oct 22, 2009 10:02am EDT
PERTH, Oct 22 (Reuters) - Apache Energy (APA.N) and Kuwait Foreign Petroleum Exploration Company (KUFPEC) have agreed to supply gas to Chevron's proposed Wheatstone gas export project in Australia, U.S. energy major Chevron Corp (CVX.N) said on Thursday.
Under the agreement, Apache and KUFPEC will supply gas from their Julimar and Brunello gas fields in north-western Australia to Chevron's wholly owned Wheatstone liquefied natural gas (LNG) project, Chevron said in a statement.
Apache will own a 16.25 percent equity stake in Wheatstone, and KUFPEC will hold 8.75 percent. (Reporting by Fayen Wong; editing by Sue Thomas)
Ken, how can you tout InterOil's 'low costs' when their is no infrastructure in place to extrapolate costs from?
Why don't you admit that your 'low cost' advantage is hugely supposition and speculation on your part?
Some would say wild-A guesttimating!
What would it do to your hypothetical cost advantage which exists in your imagination if say an oil barge ran aground on a sand bar in the Purari River and the rescue had to wait until the monsoon season was over? LOL! I made that up, but stuff happens, you know that.
....excerpt from recent WSJ article by Patrick Barta and Ross Kelly:
........"Gorgon ( Gorgon Mega-Project in Australia ) , which is expected to start producing gas in 2014 and eventually reach output of 15 million metric tons a year, will meet a large portion of Asia's anticipated new gas demand, complicating competitors' efforts to lock in customers of their own.
It will also tie up thousands of workers when Australia is already struggling from a shortage of skilled labor, driving up the cost of competing LNG facilities and potentially delaying them further.
With Gorgon and possibly other projects moving ahead, "there is potentially a lot more supply available than there is demand," says Frank Harris, head of global LNG at energy consulting firm Wood Mackenzie. As a result, "there is a huge imperative to get your project across the line and lock up markets" now before others do, he says.
Taken together, Australia's proposed gas projects could add more than 60 million metric tons of natural gas per year in an Asian market that currently consumes about 120 million tons annually. But the market doesn't need nearly that much new gas, analysts say, and other countries are cracking open new supplies as well. Qatar, Russia, Indonesia and Nigeria have as much as 80 million tons of capacity under construction or planned, analysts say....."