Probably an outperformer certainty for long term portfolios. Results out today were very good indeed. The important stuff from the SENS:-
- We continue to make progress on the execution of the front-end engineering and design (FEED) phase of an integrated, world-scale ethane cracker and
downstream derivatives units, and will commence with FEED for the US GTL and chemicals value-adds facility at the Lake Charles chemicals complex in Louisiana,
the United States, during the second half of the 2013 calendar year:
- The ethane cracker (estimated to cost between US$5 billion and US$7 billion) will produce 1,5 million tons of ethylene that will be used to manufacture a range
of ethylene derivatives. The main technologies for the ethane cracker and derivatives units have been selected and we have placed orders for critical long-lead
equipment. We expect beneficial operation for the ethane cracker to be achieved during the 2017 calendar year, with the final investment decision (FID) to be
taken during the 2014 calendar year.
- The US GTL facility (with an estimated cost of between US$11 billion and US$14 billion) will produce at least a nominal 96 000 barrels per day (bbl/d) of
product, with the potential to produce up to 10% more. The US GTL project will be delivered in two phases after the ethane cracker, with each phase comprising at
least 48 000 bbl/d. The FID for the US GTL project is expected to be taken within 18 to 24 months after that of the US ethane cracker.
- We have submitted the filings for the key environmental permits, and have regular interaction with the authorities and other stakeholders to monitor the process.
The outcome of the permit applications are expected towards the end of the FEED phase.
The Front-End Engineering and Design phase for the Gas to Liquids (GTL) project should be completed ± Jan/Feb 2014 an hence the permit applications.
SOL will be sitting pretty once they start conversion of the fracking shale gas to liquid.
The US will also be sitting pretty and US imports of oil from dictatorships like Angola, Eq. Guinea and other African countries will dwindle to probably zero.
I should have kept my SOL which I sold at a loss end October last year. Am thinking of getting in again.
Anyone support my positive views (besides TheKwok) ?
EDIT: On the other hand, we will have all that additional oil/gasoline - what will that do to the price of oil ? OK Saudi Arabia's production will decrease rather than increase going forward, which may or may not cancel out the additional US supply. What are your thoughts ?
