Fast Market Research recommends "Papua New Guinea Oil & Gas Report Q2 2013" from Business Monitor International, now available
Boston, MA -- (SBWIRE) -- 03/15/2013 -- BMI View: Plans to commercialise Papua New Guinea's gas potential with a number of liquefied natural gas (LNG) projects continue to advance. With first gas from Exxon's PNG LNG projects still set for 2014, the country is on track to benefit from its strategic location and sizable unused reserves. Progress on a long-stalled second LNG led by InterOil, and reports from Talisman Energy that the firm may have the resources base to support a separate LNG project, reinforce optimism regarding the country's gas sector.
The entrance of new players such as Total and potentially Shell to the country's upstream could further boost the outlook for the country's gas upstream, although we forecast that a continued decline in liquids production by 2022 will leave PNG with a net import requirement of some 50,000b/d.
The main trends and developments we highlight for PNG's Oil and Gas sector are:
- First gas from the US$15.7bn ExxonMobil-led PNG LNG project could treble PNG's exports and boost its GDP by at least 20%. The project remains on track for first gas in 2014, and Exxon and its partners continue to aggressively target the reserves to support a third train at the facility. However, we highlight cost overruns, with Exxon estimating costs have increased by up to 20%, as a potential concern for future projects.
- InterOil's Liquid Niugini (Gulf LNG) project could be revived after a deal giving the PNG government an increased stake after the projects was nearly cancelled by officials frustrated with continued delays. With government support and resources already identified, the project is well positioned to advance, yet a final investment decision (FID) on the project due before the end of 2012 has now been extended according to the latest information available at the time of writing from InterOil.
- Total's farm-in agreement with Oil Search adds a proven player to the country's upstream, and the French international oil company has already announced its intention to become the operator of an LNG facility and move ahead with a robust exploration schedule in 2013.
- We expect oil production to average 24,000 barrels per day (b/d) in 2022, while consumption is forecast to rise by 4.8% per annum to 2022, implying demand of around 74,000b/d by the end of the forecast period. The net import requirement would therefore be approximately 50,000b/d by 2022.
- Rising competition in the LNG market in Asia, as well as from new sources of supply abroad, could undermine the commercial viability of greenfield export projects in PNG. This is particularly true in the face of project delays and significant cost overruns impacting current developments. Alongside longstanding concerns regarding the country's business environment, notwithstanding recent signs of improvement, these above ground concerns remain downside risk to the sector's outlook.
View Full Report Details and Table of Contents
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Energy research reports at Fast Market Research
You may also be interested in these related reports:
- Oil Search Limited Analysis Across the Oil and Gas Value Chain Report
- Oil Search Limited (OSH) - Oil & Gas - Deals and Alliances Profile
- InterOil Corporation Analysis Across the Oil and Gas Value Chain Report
- Talisman Energy Inc. (TLM) - Oil & Gas - Deals and Alliances Profile
- InterOil Corporation (IOC) - Oil & Gas - Deals and Alliances Profile
- Papua New Guinea Gas Markets, 2011
- Papua New Guinea Gas Markets, 2012
- Global Oil and Gas Survey 2012-2013: Market Trends, Marketing Spend and Sales Strategies in the Global Oil and Gas Industry
- Mitsubishi Corporation Analysis Across the Oil and Gas Value Chain Report
- Papua New Guinea Oil Markets, 2012
Copyright © 2005-2013 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)