and the tassie shoal strategic partner is...., page-19

From an ts perspective, does the news get any better!!

Shell's prelude flng is estimated to cost $12Billion (australian $) or $12billion x 1.05 US$)! And that was two years ago re cost estimate.... Check out the cost increases hiighlighted in last ts update - so add a lazy 20% to prelude's cost to bring estimate up to 2013 numbers. See:

http://www.wabusinessnews.com.au/article/Korean-firm-to-invest-US520m-in-Santos-project

In essence, new onshore lng projects are now dead in the water for wa - cost of build simply means you make more money by buying australian government bonds with no chance of cost blow outs. A generalisation but i am sure the point is clear...

BTW don't expect the meo sp to react to any such news above. The mystery strategic equity partner, aka sk e&s imho, will soon buy in or meo will simply get bought out. Why now you ask? Heard it all before? Yep, but, the news today is the biggest lng game changer for wa stranded gas in the last decade. Why?

So a commercil gas source has always been the key for ts but after today's news re browse, which was the lead news story for tonight's eastern seaboard ABC 7pm news broadcast, has pretty much flipped this rationale on its head. That is, woodside has demonstrted to the market that to make an acceptable ROI, NPV, IRR out of all that stranded gas you either have to tie into existing onshore assets, which, have finite capacity, or you HAVE TO process offshore. It has now BECOMING a build it and they will come investment rationle for the first time in offshore lng processing. TS is very well placed indeed.

TS can process either LNG or Methanol in massive and expandable modules at a fraction of the cost, in relative terms, to flng.

Imho, it might not come next week or next month or the next quarter but out of the blue, at a sp probably not much higher than today, asssuming a tight ship, meo will go into a trading halt and ill come out with a lucrative ts equity psrtnership deal or will be apprapoached with a formal takover offer.

Good night.

Adl