Please correct me if I understand this incorrectly.
Contracted volume at 54tj per day. Current output at 45tj per day (average). APA Orbost plant planned capacity at 68tj per day.
That's an 18.18 % shortfall based on what COE have committed.
Of that 54tj per day commitment COE has to provide a minimum of 90%.
Which leads to a minimum of 48.6tj per day to satisfy gas contracts.
3.6tj per day is the shortfall due to foaming issue or 1314tj per year, which APA will partially compensate (to what extend we don't know).
COE can supply excess gas at spot prices if gas nomination (demand) from contractors is less than 45tj per day.
So the foaming issue is denying COE the opportunity to commit to 3.6 tj per day and restrict COE ability to sell at spot prices up to 14tj per day (68tj - 54tj = 14tj).
Yes 68tj is nameplate capacity but with spot prices so dismal it's not that bad COE can't process more at the moment, hopefully the issue will be resolved before winter.
If the above is ballpark accurate I don't mind focusing on developing the Minerva Gas plant with capacity up to 150tj per day.
DYOR.
COE Price at posting:
30.8¢ Sentiment: Buy Disclosure: Held
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