Ann: Investor Update Presentation , page-34

just sharing the data, Gassed.

Stayer (and others) could be right in that the GSA isn't as "strong" as asset as you and I think. It's not a matter of public record (unlike the GSA in another stock I hold) and there could be commercial in confidence clauses that could be a problem in the future.

But as it stands now the GSA and conditions precedent are known.

The takeways from that article I posted (for me anyway)

1. "Without sales agreements, making a decision to build the project has proven impossible"

2. Even companies the size of Apache acknowledge "Chevron's heft"

IF and its a big IF, 855P (& 213) are every bit as good as we amateurs hope it to be, CVX's heft is going to be needed to build the infrastructure to get the gas to Gladstone for example.

ICN's sales agreement - per article - makes building another train at Gladstone an option too.

And if it all goes pear shaped, ICN could just be a LNG broker profiting from the spread in pricing of a Tapis linked LNG price contract (assuming no gotchas).


To help on visualizing the project size, consider

Average sized 135,000 m3 (62,000 tons) LNG ship unloads in about 12 hrs docked for 21 hours and one month trip to Korea from Middle East or 15 days from Australia.

The ICN GSA is 2,000,000 tons per annum - so call it about 30 ship loads (slightly larger carrier at 150Mmcm) - or about a shipload every 12 days!!

Or easier conversions for me:
1 ton LNG = 55GJ = 55Mcf
1 Million Tons LNG = 55PJ = 55Bcf

And so the 2Mmtpa LNG becomes the 110Bcf of gas (C1) which from a raw gas (which we take out of the well) point of view is probably closer to 125Bcf to adjust for CO2.


The above of course assumes all goes to one port (say Gladstone) which the GSA is not restricted too. Is the flexibility becoming apparent.

Sure I'm "blue sky" speculating but as Apache effectively said if I remove the double negative - sales agreements makes the project possible.

Ideally ICN has all the 2P gas Reserves itself and all the infrastructure to process the gas and transport it to port for liquifaction and onto the ship it goes. NOT LIKELY.

And so enters CVX's "heft" and hopefully the plan delivers.