Japan is now receiving LNG from Papua New Gunea....First Shipments just left for Japan
Papua New Guinea, the small nation in Oceania, has become the world's 20th LNG exporter after an ExxonMobil Corp.-operated facility constructed near the capital Port Moresby shipped its first cargo
How much income?
The total projected income from the project is US$31 billion. Of the one-third expected to remain in PNG, the vast majority is paid as tax revenue, dividends, royalties and infrastructure tax credits to the National Government, provincial governments and landowners, with around 10 per cent paid as operational costs.
Peter Botten, CEO of venture partner Oil Search Limited, told Business Advantage PNG, the company expects to earn in excess of US$1.5 billion (K4.2 billion) per year from the project. The PNG government expects its annual revenues from PNG LNG to be US$600m (K 1.7 billion) to US$ 775m (K 2.2 billion) until early next decade and then, with the development costs depreciated, to rise raise rapidly to around US$1.58 billion (K4.5billion).
Former Treasurer Don Polye says the PNG Government has pre-borrowed the future revenue from the gas project to underwrite a $1.2 billion (K3.4 billion) loan from Swiss bank UBS for a 10 per cent shareholding in Oil Search, which is also an exploration partner in what is hoped will be the country’s second major gas project, Elk/Antelope.
‘The sad story is there will not be any funds coming in because the first flow of gas, the monies coming in will be diverted to paying off the debt, the 3 billion kina debt, UBS loan, and therefore no money will go into the sovereign wealth fund,’ Polye has claimed.
The long road to LNG: a timeline1987 Gas is discovered at Hides in PNG’s Southern Highlands.
2004 The PNG Gas Project is considered to pipe gas to Australia from PNG.
2007 The PNG Gas Project is shelved and work starts on devising the current PNG LNG Project.
2008 Venture partners sign a gas agreement with the PNG State.
2009 Environmental Impact Statement approved by PNG Government (October). Final project approval and first sales and marketing agreement signed for the gas (December).
2010 Construction begins on the project. Project financing finalised (March).
2011 Work on LNG plant and onshore pipeline commences (April). Work on offshore pipeline commences (October).
2012 Work on Komo Airfield commences (September).
2013 First gas enters LNG plant (September).
2014 First LNG production (April). First LNG exports shipped to Japan (May).
Can the BC Liberals come up with a taxation plan, one that is acceptable to the big energy giants, British Columbia has no national or provincial energy entity, we have nothing, the difference between Papau New Gunea and British Columbia is..
British Columbia is not investing any money, or borrowing money for any LNG project, British Columbia wants everyone else to do the heavy financial lifting, B.C. merely wants to hold out its hand in hopes that the big energy companies put money in....
Not likely to happen..As for Christy Clark`s LNG fantasy...Another gas shipper to Japan, B.C. has no final investment decisions, no taxation scheme acceptable to the energy companies, ...
"The window of opportunity is closing"
Papua New Gunea invested borrowed dollars to make it happen, .....
Unless British Columbia has money in the game, unless British Columbia rolls the dice with their own money ......?
Unless that happened any financial return from LNG for British Columbia will be negligible..
Lastly...The Chinese market just evaporated,....The Japanese market just got a whole lot smaller..And..
Can you say Shinzo Abe and Japan`s nuclear restart later this year?
The Straight Goods
Cheers Eyes Wide Open