PNG LNG Sees Another Cost Blow Up

The cost of LNG project in Papua New Guinea has blown out to $19 billion from a previous estimate of $15.7 billion, Santos said in a statement. Santos, along with Oil Search and Exxon are shareholders in the project.

It is the second cost blowout announced by the joint venture. Last year, the cost estimate was hiked to $15.7 billion from $15.0 billion.

Foreign exchange fluctuation, work delays, land issues, adverse logistics and weather conditions have been citing as reasons for the cost escalation. The capacity of the plant

The project is 70% complete and the first LNG cargoes are still expected to be shipped in 2014.