Exxon predicts Gorgon FID soon

Vol 13, PW 5 (13 Aug 09) News in Brief

ExxonMobil believes Gorgon LNG partners will reach a Final Investment Decision within the next five months, paving the way for first LNG to Kochi in 2014.

“The FID could be reached in six weeks, three months or before year-end,â€‌ we hear. “When a company like Exxon puts that in a press release, it gets an additional level of credibility.

â€‌ Ending months of uncertainty, Exxon on August 10 announced a 20-year Sales and Purchase Agreement (SPA) for 1.5m t/y with Petronet-LNG. But hidden in the statement was a hint that no supplies are possible unless Gorgon consortium partners Chevron (50%), Shell (25%) and Exxon (25%) finalise how much it will cost to build the 15m t/y three-train project.

“A Final Investment Decision is anticipated later this year,â€‌ says the statement, cautiously. Analysts say a statement like that from Exxon, however cautious, is as good as a promise.

“Putting it in a press release reflects confidence at the highest levels,â€‌ we hear.