Exxon Mobil's 6.9 million ton per year PNG LNG project in Papua New Guinea has become the latest casualty of Australasian budget blowouts, with the US giant hoisting capital spending estimates by 21% to $19 billion, after a $700 million increase last December. Higher foreign exchange costs are the main reason — accounting for $2.1 billion of the overall $4 billion jump — along with work stoppages, land access disputes and bad weather. Exxon says PNG LNG is on track to start exports in 2014 and is 70% complete. The cost increase makes a third train, expected to generate a higher internal rate of return since it will use existing infrastructure, more crucial to improving project economics.
展开▼
