production in South Africa is from 10 wells currently...so the 1mmcf/d is from those wells not just 1...
Large LNG plants are long-term capital-intensive investments, which contrasts with Small scale liquification plants (SSL) (MPO will be looking at these types).
Many SSL plants are available in containers or modules ready to be shipped anywhere and for immediate start-off operation.
On the basis of projects completed in Norway recently, investment costs for small-scale LNG production capacity can be indicated at US$ 20m per 100 tonnes (125,000 standard cubic metres) of daily production capacity. This would include its power generating capacity for the plant's requirements based on the available gas feed, LNG storage capacity for one week of production, and truck trailers for road transport.
Small-scale LNG is flexible, can cover widely dispersed demand at modest investment cost & is suitable to relatively small volumes of gas. It can work either as a market-opener to be replaced with pipeline supplies when the appropriate level of demand has been reached, or as a long-term but adaptable solution to supplying gas.
nice move in my view... considering the limited amount of money spent in SA so far.... things continue to build nicely...
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
