) has obtained an additional debt financing of $1.5 billion for
its $19 billion Papua New Guinea (PNG) liquefied natural gas
The additional financing will assist in covering the excess
expenses at the LNG development, which has a capacity of 6.9
million metric ton per year. The project cost has flared up by
21% to reach $19 billion from $15.7 billion in late 2012.
The PNG LNG project, operated by ExxonMobil, is scheduled to
start operations and deliver its first LNG cargoes in 2014. Other
project partners include Oil Search, National Petroleum Company
Papua New Guinea, Santos, JX Nippon Oil & Gas Exploration,
Papua New Guinea's Mineral Resources Development Company and
Petromin PNG Holdings Limited.
PNG LNG is an integrated development that comprises gas
production and processing facilities in Hela, Southern Highlands
and Western Provinces of Papua New Guinea. It also includes
liquefaction and storage facilities in the northwest region of
Port Moresby on the Gulf of Papua, with a capacity of 6.9 million
tons per year. The facilities are linked by over 700 kilometers
(450 miles) of pipelines.
Considered as holding one of the largest resources in Papua New
Guinea, the LNG development is expected to boost GDP by 20%.
The project has long-term LNG supply contracts with four primary
customers in Asia. The customers are
China Petroleum and Chemical Corporation
), Osaka Gas Company Limited, The Tokyo Electric Power Company
Inc. and Chinese Petroleum Corporation.
ExxonMobil carries a Zacks Rank #3 (Hold). However, Zacks Ranked
#1 (Strong Buy) stocks -
Enbridge Energy Management, LLC
Stone Energy Corp.
) - seem good investment options for the short term.
ENBRIDGE ENERGY (EEQ): Free Stock Analysis
STONE ENERGY CP (SGY): Free Stock Analysis
CHINA PETRO&CHM (SNP): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
To read this article on Zacks.com click here.