Ann: SMS to give TNG Process and Product Guarantee, page-28

I am sure I posted about this quite some time ago. Approval from german ECA was always going to require a fixed price turn key contract,with guarantees on everything,including throughput rates,grades,product quality,process quarantees etc. SMS now take on the risk for those absolutely vital aspects of the refinery performance and I imagine that there will be provision for penalties for time elongation and liquidated damages for non performance.That's the good news.The other side is that in exchange for SMS taking all of that risk,they will build in margin to all aspects of the process,which WILL raise capex from the current levels. They simply must do that to mitigate their risk. While that will mean potentially significant increases in capex,it will also mean that if there are no issues (or ones that are easily remediated) at the point of production,then the refinery may well exceed nameplate capacity and opex would be lowered and profit margins increased.