The Federal Government will build a $900 million gas pipeline from Wadeye to the Gove Peninsula over the next 18 months Pacific Alumium has said the bauxite mine that keeps the town going needs to switch from expensive diesel to much cheaper gas to survive.
Power and Water Corporation will "lend" the mining company 30 per cent of its gas.
But the agreement could still lead to Pacific Aluminium closing the mine's refinery for nearly two years. That would lead to at least 800 workers being made redundant and Nhulunbuy's population falling to just over 1000 until the gas supply was switched on.
This gas supply will be coming from ENIs black tip field and what is within a stone throw from blacktip,
MEO. and what has ENI stated recently...yes that they want more gas to come ashore through there existing set up at Wadeye.
And don't forget about the Dow Chemicals plans of setting in Darwin as well. And yes that IS a stones throw from this same pipeline as well.
Can we safely say the dots can be joined between ENIs plans for the area to MEOs 454p permit. time will tell.
454p is a very exciting to this long term-er because if ENI becomes a partner here the bond between the two company's will be stronger than ever, MEO will be tied into existing pipeline very Quickly because that's the way ENI roll.
MEO Price at posting:
12.5¢ Sentiment: LT Buy Disclosure: Held