Santos has received new cost and throughput information regarding the PNG LNG Project from the operator ExxonMobil. These estimates remain preliminary as the contract awards have not yet been made.

The revised capital expenditure for Phase 1 of the project is estimated to be approximately US$15 billion. This is an increase on the US$12.5 billion pre Front End Engineering and Design (FEED) estimate due principally to the inclusion of pre start-up operating costs and scope changes including acceleration of some works from later phases of the project. At the same time, LNG plant output is expected to increase from 6.3mtpa to 6.6mtpa resulting from greater fuel efficiency.

Overall the PNG LNG Project continues to progress towards an investment decision at the end of 2009 with target first gas remaining at late 2013 / early 2014.

Tags: Exxon Mobil Corporation, Santos