Western Province Governor has called for the aggregation of all...

Western Province Governor has called for the aggregation of all gas resources in his province as Horizon is currently developing.
This is a clear rebuke to Exxon JV partners (inc OSH and STO) stated intention to develop the P'nyang Field as a stand alone rather than part of Horizon's aggregation project. His reference to the PNG LNG project being a mistake is anther slap down of the JV partners in the wake of the Jubilee Report and the IMF's opinion that PNG gave too many concessions away and is now not reaping fair returns on the highly profitable PNG LNG project. The political tide is now firmly against the JV partners who have unhelpful, arguably obstructive of the Western aggregation project at every turn. PNG cabinet's frustration was also evident recently in the 'cancelling' of PDL10's licence, quickly reversed as they knew it would be, but sending a message nevertheless. In PNG media lately cabinet has been reiterating that both pipelines and processing plants must be shared with third parties, ie if the Western aggregation needs PNG LNG infrastructure it must be provided at a fair price. Meanwhile we see LNG demand exceeding supply much earlier than expected driven by Chinese demand as they drive down oil pollution by changing to LNG. Both the political and economic drivers for Western gas aggregation are aligning in PNG. The income from Horizon's share will complete CEO Brent's  ambition to create a mid tier oil and gas producer. The share price? Blue sky.


http://www.looppng.com/png-news/governor-calls-‘aggregation-scheme’-resources-76828