Unlocking CTP's potential, page-41

Ross

Good comments but I'm not sure that the second pipeline is needed.

With the current gas reserves, we have adequate mechanisms to market for the near and long term. Remembering that the northern route was chosen as a better economic outcome by NT government only a year or so back. It was the preferable route as a lot of the gas was coming from Blacktip.

I've no doubt that CTP would have preferred the southern route (as would I) and I am also very confident that both lines will not be economic together.

The recent comments by PM have only been to placate the Xenophon team and their strong SA connections. It is a bit like the pipeline from WA, i.e. not commercial on its own, but may work with lots of government money ( read interference).

I have not heard anybody say that the Amadeus gas needs added pipeline capacity to get it to market. Pipeline prices yes, but not capacity. Building a second line would severely impact commercial terms for both lines, which is hardly a positive outcome.

IF the shale fracking works in NT, then that is a different ball game, but compression and looping could also provide some added volumes if it is needed at the appropriate time.

Cheers, AL