Valuation Scenario based on CEDAR FLNG analogue project
Cedar LNG Kitimat FLNG project (https://www.cedarlng.com/about/)
- ·3 mT or 400 mmcfd ($3bn capex for FLNG facility owners)
- ·Already has 50% gas supply contract @ 200 mmcfd.
- ·Gas supplier gets (JKM – liquefaction tolling fee and shipping cost)
- ·Indigenous majority ownership stake
- ·Renewable electricity for plant (Net Zero) and ties into nearby pipeline supply
- ·FID imminent
Scenario:25 y gas supply gas to 2050 @ 400 mmcfd
Need to get to 3 .5 TCF from bigger RAF or adjacent fields. The 3D could have a surprise benefit:
- ·could be DHI to show G/W or O/W contact
- ·that would show how deep contact is and also how extensive accumulation is
- ·means potential for very accurate resource statement and easy to locate appraisal wells
How’s that work? A mix of
- ·Amplitude anomalies
- ·Complex seismic trace attribute analysis
- ·AI 3D interpretation looking for horizontal phenomena
- ·AVO gas extent analysis
- ·Key is anomaly that lines up with structural contour (contacts are flat)
Disclaimer: Speculative scenario - Not financial or investment advice - DYOR
