a gsa with santos?, page-11

Now, why would Santos need to acquire extra gas, if they already had enough?

For as long as Santos has been a holder, you have tried to convince ESG holders that Santos had no need for extra gas. They were a passive investor in ESG; they could see a value, but that was way down the track; or that PEL 238 gas was for 'back-up' (but that in no means implied that they were going to get a pipeline built north so that it could be used as back-up gas).

Now, are you saying that Santos DO need the gas? That maybe, just maybe, that half a biilion dollars WAS related to the huge hole they had in their gas reserves. And that GLNG depends on the extra gas, not just from Santos' 'portfolio' (their 35% of PEL 23*), but also from ESG's controlling interest.

It seems a rather odd thing for Santos to do - sign a huge GSA, for maybe 2,000PJ, if they don't need the gas...

Because if Santos already has enough, then an extra 2,000PJ will be too much, won't it? :) What are Santos going to do with it if they don't need it? Pipe it up to QLD so they can flare it?

Perhaps now db, you may have to come clean with HC readers that Santos IS in need of ESG's gas, and could only make an FID by being underwritten by an agreement with ESG.

No ESG gas. No deal with Kogas. No FID for Santos. That was always the equation, which put ESG in such a strong negotiating position.

Yaq