ExxonMobil’s 10 Top-Valued Projects Chained to Sinking Prices of Commodities, LNG
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 LNG liquefaction production and export terminal on the Kenai Peninsula and the 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 natural gas pipeline from Alaska's North Slope to the Kanai Peninsula, which it co-owns with TransCanada Corporation (NYSE:TRP) (Calgary, Alberta).
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.
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