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Released August 01, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Friday morning witnessed an easily overlooked milestone in the recent economic recovery: Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) was surpassed in market value by Facebook (NASDAQ:FB) (Menlo Park, California) and Amazon.com (NASDAQ:AMZN) (Seattle, Washington), making it the last oil & gas company to leave the world's five most valuable companies, which are now inhabited entirely by tech companies. ExxonMobil may yet rebound, but investors have known for a long time that two major factors have been weighing it down: the oversupply of liquefied natural gas (LNG) in the global market, and persistently low commodity prices. Industrial Info is tracking about $140 billion in active projects involving ExxonMobil on five continents, more than 95% of which are in three industries: Oil & Gas Production, Oil & Gas Pipelines and Chemical Processing.
The global LNG glut has effectively frozen some of the highest-valued projects owned or serviced by ExxonMobil, such as ConocoPhillips' (NYSE:COP) (Houston, Texas) $45 billion-to-$65 billion Alaska LNG Project, which includes the $15 billion LNG liquefaction production and export terminal on the Kenai Peninsula and the $7.5 billion LNG gas treatment plant in Prudhoe Bay, and has ExxonMobil and BP plc (NYSE:BP) (London, England) as partners. ExxonMobil's largest Oil & Gas Pipeline Industry project also is part of Alaska LNG: the $5.5 billion natural gas pipeline from Alaska's North Slope to the Kanai Peninsula, which it co-owns with TransCanada Corporation (NYSE:TRP) (Calgary, Alberta).
The massive project is designed to produce liquefied natural gas (LNG) and ship it to overseas markets, for which it had received approval from the U.S. Department of Energy (DoE) covering the next two years. But the LNG oversupply has kept the ambitious project mired in its preliminary design phase, with permit approval three years away at the earliest. ConocoPhillips, BP and ExxonMobil must decide by the end of the year whether to move forward into the costlier front-end engineering design (FEED) phase.
Recently, according to Alaska Dispatch News, the three partners indicated that they may not proceed, prompting Governor Bill Walker to suggest that the state take a bigger role in the project. Many Alaskans have reacted with strong skepticism, knowing that it is uncertain when (or if) the market conditions will improve. Still, there are some signs of hope. According to KTVA Alaska, Japanese energy developer Resources Energy Incorporated (Tokyo, Japan) would be willing to invest in the Alaska LNG project in exchange for cheap gas. (Japan currently is the world's largest LNG importer.) Mary Ann Pease, vice president of REI, told the local network: "If I could take one item that's the most important for the clients I deal with in Japan, it's a stable, long-term supply of LNG. They don't want their primary off-take coming from the Middle East, they would rather have it coming from Alaska."
For more information, including capacities, measurements, operating pressure, major components and contractor contact information, see Industrial Info's project reports on the Kenai Peninsula terminal, the Prudhoe Bay treatment plant, and the North Slope-Kenai pipeline.
Canada's Imperial Oil Limited, in which ExxonMobil has a majority ownership, is looking at better prospects with its WCC LNG Liquefaction Plant in Prince Rupert, British Columbia, which is designed to produce and export LNG to Asian markets in three phases, each valued at $8 billion. Each of the three phases is expected to add 12 million tonnes per annum of capacity.
The WCC project's export license was granted a 15-year extension by Canada's National Energy Board last week, , following last year's legislation introduced through Canada's Economic Action Plan, according to the Dawson Creek Mirror. The project had received a 25-year license in December 2013, giving it a total of 40 years of export opportunity; however, the license will expire if no gas is exported within 10 years. For more information, see Industrial Info's project reports on Phase I, Phase II and Phase III.
The four other highest-value projects involving ExxonMobil are:
The global LNG glut has effectively frozen some of the highest-valued projects owned or serviced by ExxonMobil, such as ConocoPhillips' (NYSE:COP) (Houston, Texas) $45 billion-to-$65 billion Alaska LNG Project, which includes the $15 billion LNG liquefaction production and export terminal on the Kenai Peninsula and the $7.5 billion LNG gas treatment plant in Prudhoe Bay, and has ExxonMobil and BP plc (NYSE:BP) (London, England) as partners. ExxonMobil's largest Oil & Gas Pipeline Industry project also is part of Alaska LNG: the $5.5 billion natural gas pipeline from Alaska's North Slope to the Kanai Peninsula, which it co-owns with TransCanada Corporation (NYSE:TRP) (Calgary, Alberta).
The massive project is designed to produce liquefied natural gas (LNG) and ship it to overseas markets, for which it had received approval from the U.S. Department of Energy (DoE) covering the next two years. But the LNG oversupply has kept the ambitious project mired in its preliminary design phase, with permit approval three years away at the earliest. ConocoPhillips, BP and ExxonMobil must decide by the end of the year whether to move forward into the costlier front-end engineering design (FEED) phase.
Recently, according to Alaska Dispatch News, the three partners indicated that they may not proceed, prompting Governor Bill Walker to suggest that the state take a bigger role in the project. Many Alaskans have reacted with strong skepticism, knowing that it is uncertain when (or if) the market conditions will improve. Still, there are some signs of hope. According to KTVA Alaska, Japanese energy developer Resources Energy Incorporated (Tokyo, Japan) would be willing to invest in the Alaska LNG project in exchange for cheap gas. (Japan currently is the world's largest LNG importer.) Mary Ann Pease, vice president of REI, told the local network: "If I could take one item that's the most important for the clients I deal with in Japan, it's a stable, long-term supply of LNG. They don't want their primary off-take coming from the Middle East, they would rather have it coming from Alaska."
For more information, including capacities, measurements, operating pressure, major components and contractor contact information, see Industrial Info's project reports on the Kenai Peninsula terminal, the Prudhoe Bay treatment plant, and the North Slope-Kenai pipeline.
Canada's Imperial Oil Limited, in which ExxonMobil has a majority ownership, is looking at better prospects with its WCC LNG Liquefaction Plant in Prince Rupert, British Columbia, which is designed to produce and export LNG to Asian markets in three phases, each valued at $8 billion. Each of the three phases is expected to add 12 million tonnes per annum of capacity.
The WCC project's export license was granted a 15-year extension by Canada's National Energy Board last week, , following last year's legislation introduced through Canada's Economic Action Plan, according to the Dawson Creek Mirror. The project had received a 25-year license in December 2013, giving it a total of 40 years of export opportunity; however, the license will expire if no gas is exported within 10 years. For more information, see Industrial Info's project reports on Phase I, Phase II and Phase III.
The four other highest-value projects involving ExxonMobil are:
- $15 billion: LNG liquefaction plant in Russia
For more information, see Industrial Info's project report. - $14 billion: LNG liquefaction plant and export terminal in Tanzania
For more information, see Industrial Info's project report. - $7.4 billion: Floating LNG production facility, offshore Australia
For more information, see Industrial Info's project report. - $7 billion: Natural gas subsea development, offshore Malaysia
For more information, see Industrial Info's project report.
