Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Exxon facing a USD3.3b spike in PNG LNG project costs  Join our daily free Newsletter

MENAFN - 12/11/2012

No. of Ratings : 0
Add to Mixx!


 


(MENAFN) Exxon Mobil's latest liquefied natural gas project in Papua New Guinea (PNG LNG) is facing a big increase in costs, as competition heats up from new gas supplies coming from North America, Reuters reported.

Exxon blamed unfavourable foreign exchange rates for the USD3.3 billion hike, which will bring total costs to USD19 billion.

But the company said in a letter to its partners that the project remained on schedule for start-up and delivery of gas in 2014. It also increased its output capacity target by 5 percent to 6.9 million tons per year.

LNG projects are notorious for running overbudget and missing schedules. In Australia, three out of seven projects under construction are facing over 20 percent increase in costs, while a fourth is conducting a cost and schedule review.

Exxon expects to finance the hike in line with the project's existing finance terms of 70 percent by debt and 30 percent by equity contributions from the projects partners.

 






  MENA News Headlines


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help