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Country called ‘under-appraised’

WELLINGTON, New Zealand (Radio New Zealand International, Dec. 16, 2010) – Industry analysts say that Papua New Guinea’s Hides gas area may contain 50 percent additional deposits compared with currently booked reserves.

Bloomberg reports sell-side research team Bernstein as claiming that Exxon Mobil’s liquefied natural gas project in PNG could add a third production line because of the possibility of finding more natural gas.

Exxon and Oil Search Ltd. plan to produce 6.6 million metric tons a year of the frozen fuel in 2014 from two production lines at the LNG venture.

Analysts say the main trunk-line for PNG LNG has the capacity to accommodate a third and possibly fourth LNG train at a low cost, making the marginal return on LNG expansion extremely attractive.

Bernstein says PNG remains under-explored and under-appraised, and the possibility of multi-trillion cubic feet discoveries remains high.

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