The 2014 proposed development plan of early condensate stripping with later gas development would have made sense all those years ago. However, leading upto 2019, it certainly wasn't the plan being advocated by HZN. We know that the independent plan developed and promoted by HZN is WLNG.
If PNG approved the original plan, it is obvious that HZN would have wanted to changed it for a clearly better path to development (condensate and gas at the same time).
I assume that it would not have been possible to submit a new WLNG-type development plan due Repsol's intention to exit, i.e., Repsol would not signoff on WLNG.
Recent announcements by the PNG government: such as third party access to (at least) the Pn'yang gas and condensate pipelines, the (strong) desire to see a Western Province Gas Hub to facilitate the development of stranded gas discoveries, and domestic gas sales obligations to facilitate domestic economic growth,etc.indicate that PNG are developing a Vision to leverage their natural resources to develop their country in a more robust way than in the past.
Given the PNG government's newly stated Vision it is logical that they would not approve the 2014 condensate stripping plan. It would make no sense.
HZN has stated that the newly stated Vision opens up potential opportunities that previously didn't exist, and has the potential to make the WLNG development path redundant.
It is clear to me that the interests of HZN JV partners and the state of PNG can be easily aligned. Just need to get Repsol OUT and Changcheng (or someoneelse) IN.
I see this as an opportunity to make progress.
Timing is most likely related to the fact that the Department has been consumed with PNG LNG/Pn'yang negotiations. Now that that project has largely been bedded down, they have time to focus on the next set of issues.
There are still risks, but I am hopeful of a positive outcome.
HZN Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
(20min delay)