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Exxon said to declare force majeure on exports from Papua LNG project

Published 03/02/2018, 07:58 AM
© Reuters.  Exxon said to declare force majeure on exports from Papua LNG project
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  • Exxon Mobil (NYSE:XOM) reportedly has declared force majeure on exports from its $19B Papua New Guinea liquefied natural gas project, which has been shut since Monday because of an earthquake.
  • XOM earlier had told buyers that the plant’s two LNG trains would be shut for at least seven days but has not commented on whether it had invoked force majeure.
  • The large-scale supply disruption has caused Asian spot LNG prices to surge 5% since last week to $8.80/mmBtu.
  • "Given the location and magnitude of the earthquake, as well as the scale of the aftershocks, we anticipate at least a month’s downtime is likely,” UBS says on the earthquake’s likely impact on the LNG sector.
  • Now read: Steel Tariff Worries Are Overblown - Cramer's Mad Money (3/1/18)


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