LNG prices are down. Add in low oil price and it does not look good. Especially for your job.
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Gorgon and Wheatstone are the yearly dividend cash flow for the corporation going forward. Sunk costs are not a consideration to management. What is of interest to management is future plans. New projects to keep the LNG trains full are expensive and LNG prices are low, so either management keeps putting big dollars into ABU to keep dividend cash flow, or miss cargos and make up dividend elsewhere in the company. ABU track record for delivering on schedule and to budget is poor, so can see management being very apprehensive spending on MCP until LNG forecast prices are about three times what they are. Not anytime soon....
@3whd, Yes, you described your own post perfectly. Thanks for the accurate description and portrayal of the poster.
No, Not near as profitable as US assets. That's a known fact, backed by data. Why the tall tales?
More than US assets.
Heard a couple years ago that the projected payback shifted from 6 years to 12 after the initial overruns.
Is this really a question. They haven't even been running for 5 years of course they haven't paid their debts. Don't forget the money corporate loaned to the ABU was at an interest rate the Australian government investigated them and penalised Chevron for.
Most of the posts here are dull, bland and uninteresting. It would help if the average IQ of contributors was raised just a notch so readers don’t fall asleep in mid-sentence.
ABU is Chevron's largest non-profit BU
I load the ships...yes these will be great assets. If Chevron can modernise its systems
No. Not profitable yet and will not be for a very long time. Yes they are generating cash.
At least they have cool names.
Depends on if you mean: do they have a positive cash flow (annually, yes), or, have they recouped their investment (not for a loooong time).
Yes, of course. They are profitable, but the payout timeline is further into the future than originally planned before the major cost overruns. Still, these LNG asset centers are profitable and are cash cows to Chevron.
I don't think so
Gorgon and Wheatstone are minting money