Ann: Project Haber Update, page-15

Just to continue on from my previous post, this article is very interesting. Key points:
- Incitec have signed up for full output from Perdaman plant, conditional on finance.
- Gas to be sourced from Scarborough, which still has not reached FID itself.
- If Woodside send gas to Perdaman, domestic gas markets will be short.

https://www.boilingcold.com.au/incitec-pivot-backs-perdamans-4-6b-urea-plant-with-20-year-offtake-deal/

If Woodside et al. are going to invest $15 billion in Scarborough LNG, why send any of the gas to a local producer. Far easier to takeover a domestic producer with large gas reserves to serve domestic customers right?

Also, the fact that the Incitec-Perdaman agreement is conditional on finance being secured raises some interesting possibilities. For example, if financiers think Haber is a better economic proposition, why fund Perdaman's project? Why not instead, encourage them to consolidate in a single project? Will Perdaman perhaps wait until after SE is drilled to make FID? Alternatively, if Perdaman gets their project financing first, will this affect Strike's access to finance? this might explain why Strike are going hell-for-leather on Haber (which is a good thing) and SE. The next 6-12 months might be the time when finance for a urea plant is easiest to acquire.

Just thinking out loud