Exxon Mobil Corporation (NYSE:XOM) To Build Barge And Floating Infra Site


Dallas, Texas 07/30/2014 (FINANCIALSTRENDS) – Exxon Mobil Corporation (NYSE:XOM) is considered to be working hard on industry tenets that LNG ‘floating’ variety is cheaper and is exploring infrastructure options, with Imperial Oil as project partner to build floating as well as barge-supporting LNG facilities.

The location for such an ultra-modern facility would be the West Coast of Canada, north of Prince Rupert, B.C., where nearly 6 barges could be included within the narrow inlet.

In an email, spokesperson at Imperial Oil ltd, Leanne Dohy noted that “We are still early in concept evaluation, and both onshore and barge-mounted concepts are being considered. A barge-mounted concept would reduce the onshore footprint.” The project is likely to see a final decision, in terms of investments by 2018. Thus far there have been no discussions on the funds to be used for the facility on the public domain.

Exxon Mobil Corporation (NYSE:XOM), analysts predict, hopes that such a facility will allow the company to cut-back on the high costs of operations. The major setback in this region has been the competition for labor as more than 12 such projects along the same coast are expected.

Ever since the line of thought that a ‘floating’ LNG infrastructure would work out to be cheaper has been doing the rounds, many established companies, including the likes of Royal Dutch Shell PLC have dallied with the thoughts of establishing such facilities. It is expected that shell will soon have a vessel which will convert gas to liquid at the sea. This is expected to be the first of its kind and is expected to rise off the coast of Australia by 2016. Shell already has a field operating in the region- Prelude, which holds substantial offshore deposit and there not necessitating an expensive pipeline.

Exxon Mobil Corporation (NYSE:XOM) is expected to offset the costs of production with the new infrastructure in place.