2011 i can't wait, page-15

"....I mean, who's going to pay for all of these massive pipelines, LNG facilities and offshore loading terminals??? No price for a GSA can be worked out until the feasibility has been done for the entire supply chain of this product because the Chinese are only interested in the end prodcut reaching their shores....."

and that's the point!

it was my understanding that one of the big "beefs" that ANZ had, was that the granting of the Import Licence was going to be difficult, and that other LNG importers would not like a new player entering the field. why have a new importer when China already has other importers already established?

it seems to me that this issue has been resolved. Shenzhen was forced to J/V with an established importer/oil/gas coy, in order for the project to move forward.

as RJ states, this is a huge plus, because it will bring the big end of Chinese Town into the deal.

imho, when ICN states that a "... Chinese stateowned
public company..." will be the J/V partner, it is saying to me, that the real likelihood is that it will be one of a few BIG, BIG players eg Sinopec, CNOOC etc.

Why, because these guys are already comfortable with AUst CSG to LNG, they know the tax rules, enviro rules, political situation, engineering and project issues at both ends of the gas to LNG process, and they have all the necessary expertise already lined up for their other investments.

I reckon, when (not if) the J/V partner is announced, and if it is one of these "big boys", just watch the ICN SP shoot away. Because that will give this GSA real credibility !!!!! The credibility I for one have been looking for.

Once we have that, then everyone will take it seriously - and ICN will be in a better position to negotiate gas supply deals etc. I still see a deal will be done with Beach, utilising the gas from C/basin.

Fozhard, the ASX release does state that a Full Feasibilty STudy and certification of the Gas will be Conditions Precedent. So both of your "key attributes" are being addressed.

Certification of the reserves is going to cost money.
I think the funds from Stanwell can only be used to proveup reserves for Stanwell project. And, ATP626 effectively is quarantined, because Stanwell can put its foot on other acreage in ATP626 until it gets the gas it requires to fulfill its project.

So i think ICN will need funds for further exploration, and in order to prove up reserves for the Chinese.
SO - I am thinking that we should be watching for ICN to farm-out some of its equity in these permits to our new Chinese J/V partner (ie maybe Sinopec etc)??

It is just what other CSG coys have done.

"....I mean, who's going to pay for all of these massive pipelines, LNG facilities and offshore loading terminals??? No price for a GSA can be worked out until the feasibility has been done for the entire supply chain of this product because the Chinese are only interested in the end prodcut reaching their shores....."

i think the Chinese partner/s will ? but that is further down the track. the "commercial terms" have been agreed. ANd its BECAUSE of the fact that "..the Chinese are only interested in the end prodcut reaching their shores....." that the Chinese will wish to become an equity partner, and a customer - its all happened before.
they want supplies - and they want security.

am feeling a bit more comfortable now. was that a Chrissie present maybe?

cheers