LNG: LNG (.54c) has all the approvals for FL & a Chinese customer/investor & now has a supply route.
But NO GAS stitched up - so nil market cred. (LNG has stated - several times - gas supply is Priority Numero Uno. Mr Brand has used the words: "aggresively pursue")
(For those who don't know, LNG lost Arrow to Shell, broke off talks with BOW & immediately grabbed 6% of MEL).
Gas: To secure the 3m tonnes p/a of gas, Chinese/LNG take minority equity in MEL or buy 49% of PEL 16. MEL's MD has stated they have the recourse to supply 3m tonnes of gas (but the LWPL pipeline has to be built first)
MEL: This provides MEL (.38c) with the cash for LWPL (ergo modest CR) and any shortfall in supply can be found in ROG's newly discovered, just proven, gas resource under MEL's armpit near Casino - "enough gas to supply Tweed Heads to Coffs Harbour for 20 years" says their MD.
This FL project is gathering speed and LNG's ambitions are becoming clear - there is a sense of urgency with fresh announcements occuring regularly. The fact that LNG stated the pipeline is close to QLD gas is to keep MEL honest IMO.
Bell Potter have a new $2+ LNG price target (they also follow MEL) and I have bought some for the first time today.
This is only a scenario. Like Manuel "I know nothing."
LNG Price at posting:
53.5¢ Sentiment: LT Sell Disclosure: Held
