In my last article on InterOil
Moving closer with each deal
The Papua New Guinea LNG project is InterOil's joint venture with Pacific LNG and will have an initial capacity of 5 million tons per annum (mtpa), to be expanded to 10 mtpa in phases. InterOil plans to invest $6 billion in its newest venture. Generally, for investing in any LNG project, companies look to secure around 85% in supply agreements of the total capacity.
After striking preliminary sales pacts with Gunvor, Noble
The world's primary energy mix is going through a drastic change, with natural gas the fastest-growing resource and almost coming at par with coal and oil.
The surge in demand is expected to be the steepest in Asia, especially China and India. No wonder, then, that oil companies have been flocking to areas that promise rich natural gas reserves. The South Pacific, with countries like Papua New Guinea and Australia, is one such region. ConocoPhillips
Foolish bottom line
Given the prospects of investing in an LNG project in the South Pacific region, InterOil is on its way to boost its top line. The company has already secured a big percentage of its initial capacity, and is expecting to enter into more supply contracts in the next few months. So, Fools, keep an eye on this one.
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Fool contributor Amitabha Chakraborty does not own shares of any of the companies mentioned in this article. Motley Fool newsletter services have recommended buying shares of Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.