lng presentation

Just having a flick through a presentation by LNG Ltd, the "5th" LNG project in Gladstone, but potentially one of the earliest that may be built.

They look like they are getting the ball rolling, especially with China National Petroleum Corporation's sub HQCEC on board as a 19.9% holder.

There problem though is they have no gas supply as yet. If you look at slides 10 and 11, they address this.

Looks like they want to take ramp up gas / excess gas from some of the other projects, and from other producers, but are also looking at supply from the other smaller CSG players.

Bow tops their list, with Mitsui, Westside and Molopo following, then the rest.

Molopo is of course the only one of those with the asset up for sale, so I am sure they are taking a look at it. I would guess that Mitsui may end up being the eventual buyer, but they will probably wait to pre-empt someone elses bid.

That is of course unless the bid is above Mitsui's range, or if it brings in a desired JV partner for Mitsui. They seem to be happy to be the back seat partner in these CSG projects.

Slide 11 shows what happened to LNG's share price once they lost previous gas supply with AOE.

So looking good for MPO's asset sale... I would say all the players would be keen for it, it is in a great location close to pipeline to gladstone, out of prime cropping land zones, and there is a much greater understanding of how to produce from the coals than any other smaller CSG player in the vicinity.