"but I can also vividly recollect being laughed at and ridiculed on these posts, when I forecasted that the ESG gas was more than likely going to head up North.
Buddy, did ESG announce an MOU with one of the QLD projects whilst I was out getting coffee? > No, I thought not. Piping the gas northwards is just one of the options. NLNG is looking the leading horse at the moment, due to Santos' inaction. You talk as if the gas going nprthwards has already happened... Santos wishes!
"So, where is the money coming for that (Newcastle LNG)?????"
As for capital requiremements... most of the resource projects in this country, GLNG included, don't have the money to develop projects themselves. Did Fortesque have the money, without the Chinese involvement? Do Nkwe Platinum (a $300m company with $20m in cash) have the $1.5 billion to fund their PGM project? No, of course not. (But, they do have an option with Xtrata, soon perhaps to be exercised, for Xtrata to fund the entire capex, in return for a half share of the project.)
Big resources get together with big capital. Sometimes via takeovers, sometimes via equity placements, sometimes via equity/finance, JV's etc... But to say that x company doesn't have the money is naive in the extreme. OF COURSE they don't have the money. And the customers don't have the gas. That is why ESG do deals with the likes of Hitachi. We have the gas, which they don't, and they have the capital, which we don't. (and, there are lots of other benefits that are brought to the table too).
A better question is, what on earth would Santos offer, that ESG cannot source themselves, and hence take advantage of the whole value chain? Not much, from where I am standing.
Yaq
disclosure: hold some NKP, which I use as just as one of a multitude of examples.
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