I'm not exactly sure why we would get excited about any deal with Sasol. We have always been informed that all LNG produced for Phase 1 has been allocated. As it is I believe we have/can only supply 6% and 14% of LNG requirements for Ardagh Glass and Ceramic Industries. We are hardly in a position to supply anything meaningful in relation to SA power needs.
That is not to say we would be in a fantastic position should Phase 2 ever get off the ground but that will be more to do with pricing than meaningful supply.
I think we can write off Phase 1 as ever making a profit (I think SM has conceded that it has proven the concept but as a bespoke profitable liquefaction plant it has failed miserably). Hopefully the industry and investors will accept and Renergen can move on with the IPO and Phase 2 asap because the one thing we should have confidence in is that the resources are there and they will last a long time.
RLT Price at posting:
58.0¢ Sentiment: Buy Disclosure: Held
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