Investing.com — Stocks Kosmos Energy Ltd . (NYSE:) jumped 9% on Thursday after the company, in partnership with BP (NYSE:) Plc, announced the achievement of first gas production at the Greater Tortue Ahmeyim (GTA) project.
This news comes as welcome news for the power company, which has been facing problems due to delays in the project’s timeline.
Progress towards first liquefied petroleum gas (LNG) production is a critical step for Kosmos, with expectations that the first cargo of LNG will be delivered in the first quarter of 2025. Kosmos indicated in a press release that this milestone is in line with their anticipated timeline for recognition of income from the GTA project, signaling a positive outlook for the company’s finances.
Market reaction reflects optimism after a period of poor results for Kosmos, attributed to repeated delays in achieving first gas.
Jefferies analyst Mark Wilson, in a Jan. 2 note, emphasized the significance of this development, stating that achieving first gas production at the GTA project “is an important positive for KOS given that the stock has been the worst performer in all of our international exploration coverage and production in 2024 mainly due to constant delays of this first gas time.'”
This article was generated with the help of AI and reviewed by an editor. See our T&C for more information.
