Life goes on and investment decisions will have to be made even...

Life goes on and investment decisions will have to be made even in a market that sees poo remaining low.  if ts is ever to stand out as not just a tsmp option but rather a prime LNG option then 2015 will be that time.

Just have read below re browse, they are going back to the drawing board. It is all about cost reduction....  watch the Australian gov't step up at any sniff of ts revenue...

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Browse owners delay FID by up to one year

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By Russell Searancke
19 December 2014 00:00 GMT
The Woodside-led owners of the large Browse floating liquefied natural gas project in Australia have, as expected, delayed by up to one year a final investment decision on the development due to “the substantial shift in market conditions”.
The front-end engineering and design phase had originally been planned to proceed late this year, but the revised schedule is for mid-2015.
The final investment decision, which had been earmarked for mid-2015, has been rescheduled to mid-2016.
Woodside said the shift in market conditions presented Woodside and its joint venture partners with an opportunity “to seek significantly lower cost outcomes for the Browse FLNG development, drawing on lessons learned from other projects”.
“The changes we are experiencing in our industry are starting to flow through our supply chain. We will use the time we now have to maximise long-term economic benefits for the development,” said chief executive Peter Coleman.
There are several other key initiatives that require more time as well, including certain regulatory approvals, the impacts of the recent change in the maritime boundary that affects the Browse retention leases plus more technical work to optimise and de-risk the project.
Coleman added that the decision to delay Browse was supported by all the joint venture partners.
Woodside would be going back to the shipyards, the designers and suppliers to make sure they were starting to put some of the cost reductions into the pricing they were providing the joint venture.
“While we are all very reactive to commodity prices dropping in the last month, of course suppliers are at different points in their own cycle of building that into their cost structure,” he said.
“We don’t want to move forward with Browse at this point and miss the opportunity of locking in some lower prices into our costs, and that’s what we are doing at the moment, so we are going to take a few months to do that.”
The current development concept for Browse involves three FLNG vessels deployed in a phased manner.
The Browse FLNG vessels will be replicas of Shell’s Prelude FLNG vessel and will be designed to produce between 3.5 million and 4 million tonnes per annum of LNG.
The three feedstock fields — Torosa, Brecknock and Calliance — are located in water depths of up to 750 metres off the north-west coast.
The project owners are operator Woodside on 31.3%, Shell with 27%, BP on 18%, Mitsubishi-Mitsui (MiMi) with 14.7% and PetroChina on 9%.

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