fmg calls for 'use it or lose it'

Fortescue Metals Group is expected to use its transition from a reliance on diesel power to becoming one of the State's biggest gas users by urging the Federal Government to enforce a 'use it or lose it' approach to owners of undeveloped gas resources.

It is understood a key plank of Fortescue's push is a call for the enforcement of the Commonwealth's retention lease regime, which already has contributed to the development of the Chevron-led Wheatstone LNG venture.

The key target for Fortescue is likely to be the Woodside Petroleum-led Browse floating LNG project, which includes gas in State waters and still requires WA Government support.

The Woodside consortium is haggling with the State over a domestic gas solution without having to build a pipeline to shore. It is likely the project proponent will suggest a swap, using gas from other projects with existing onshore infrastructure such as Woodside's Pluto to cover any Browse commitment.


https://au.news.yahoo.com/thewest/business/a/23940441/fmg-calls-for-use-it-or-lose-it/


A 20 year, 100% take-or-pay gas transportation contract has been signed between the joint venture DBPP Group and the miner, with Fortescue already securing Shipper Rights under the Gas Transportation Agreement.

http://www.miningaustralia.com.au/news/fortescue-announces-natural-gas-agreement


The outcome for OBL could be significant, should twiggy get his way,little wonder he tried to get OBL on the cheap.



Raider



In the land of the blind,the one eyed man is King.