According to Interoil’s conference call presentation earlier last week, it appears that EWC’s modular 3mtpa LNG plant remains and integral part and that FIDs are still expected the end of December 2012.
Below find some relevant text, taken directly from Interoil’s presentation. The whole presentation can be found on Interoil’s home page www.interoil.com
IOC LNG Activities _ Headway with PNG Government on any outstanding LNG modifications or clarifications _ Targeting year end completion for FID _ Major global Investment Banks – Morgan Stanley, Macquarie and UBS AG. engaged to optimize a LNG partner to accelerate LNG capacity to over 7.6 mtpa _ Completion of EPC contracts and prices for CSP and Pipelines
LNG Project Update – LNG Facilities EWC – LNG Facility _ The land acquisition for the Bluff site is progressing and permissions for geotechnical investigations have been received. _ The plan for the drilling/drilling and coring work has been developed for the LNG Plant location. _ EWC is finalizing the site specific portions of the FEED and input into the licensing agreement.
LNG Market Update Current Asia LNG Market status, as reported by Platts in a recent LNG forum in Singapore: _ November Japan / Korea Spot LNG price marker mid $17 range _ Spot LNG near Brent oil parity _ One year contracts at 15% Japanese Crude Cocktail (JCC) _ Long term contracts at 14.85% JCC IOC LNG Marketing status _ Final SPA drafting ongoing with Noble Group _ Targeting year end completion _ Trading HOA drafts with large Asian utilities, and Energy commodity firms _ Expectation is additional HOA execution before end of year _ Target is 1 – 2 MTA for 15 yrs
Sir Rabbie Namaliu: Former PNG Prime Minister, Minister for Petroleum and Energy, Minister of Foreign Affairs, Minister for Treasury & Speaker of Parliament _ Discussion and support by Prime Minister Peter O'Neill: To have our Gulf LNG project reach and announce FID by Year-end. The Gulf LNG to be completed before going into the Election. _ Discussions with Petroleum Minister William Duma, last Friday confirmed his support. He recognized the long term support by InterOil, but modified his stance for InterOil to add a major for acceleration to target LNG capacity. _ Discussion with Other Ministers, MEC & NEC. Many overwhelmingly support the Gulf location and work by InterOil, as it benefits one of the poorest areas of PNG. _ Benefits to Treasury and to the Department staff. The Gulf LNG project is seen for early and lower risk economic benefits to the nation and a needed regional of PNG. _ The PNG government will not force a long term contributor to the PNG economy and proven & loyal development partner of PNG, into an unfavorable negotiating position with a single company, and supports the InterOil LNG development plan. _ The cabinet members, Petroleum Minister and Prime Minister, welcome the Investment Banks to accelerate the process of LNG development in the Gulf of PNG In closing, InterOil has a solid LNG project with overall support by the country. The Prime Minister and Minister Duma confirming the desire to complete the LNG project in a timely fashion and have FID by Year-end.
EWC Price at posting:
60.0¢ Sentiment: ST Buy Disclosure: Held
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