The question is not how much it sells for in Europe or in the US. The question is how much will it sell for at the wellhead in the JDZ. That is the price ERHE will get. We could get into a big discussion on who is going to buy that gas, for how much and will it be a fair market price given the location but that seems a little premature at the moment.
The more important question is who is going to pay for the processing of that gas and the compression of that gas into LNG and who is going to pay for all the facilities to do that. Somehow I don't think any of that is part of our carried cost. Am I wrong on that? Oil and condensate are simple. You just load it on a tanker and take it to a refinery almost anywhere in the world. LNG has to be compressed on site or within the distance of a pipeline. A totally different animal.
That is why I have said all along that gas is less than optimal and I am still saying I hope we have a lot of oil and condensate to go along with gas. I don't really want to be forced to sell gas to the Chinese at the price they are willing to pay. What hydrocarbons we end up with matters and it matters a lot.
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