2009 agm

Following the power point presentation made by Stewart Elliot, which will be posted on the ASX, shareholders and visitors were invited to raise questions.
As a result of these discussions between shareholders and members of the Board, I understand that:
1. Mr. Brian Allen will meet representatives of PLN and other Indonesian stakeholders in Indonesia from Tuesday 3 November 2009 onwards to discuss the 120MW Sengkang power plant expansions as well further developments relating to the Sengkang LNG facility.
2. As far as progress concerning the Sengkang LNG facility is concerned, Stewart Elliot and Brian Allen expect the first 2 modular LNG trains (500,000tpa each) and associated equipment to be shipped from the USA and Europe respectively in about 2 weeks. Concrete on the site is expected to be poured within the next 6 weeks. The required licences to install the plant have been obtained. The first 2 modular LNG trains are expected to be installed by the end of December 2009. Commencement of commercial operation is still expected by mid 2010.
3. In relation to the 120 MW expansion of the power plant, one 60 MW turbine is expected to be shipped from Europe during November 2009 and the PPA is expected to be signed by the end of 2009.
4. Abbot Point LNG terminal: The survey licence for the Queensland Gas Highway has been granted. Negotiations with landholders and third party gas producers have commenced and commercial operation is expected by the end of 2012.
5. PNG LNG development: 20% of all gas owned by third parties and located in the Gulf province, whether such gas is to be sold on the PNG domestic market or exported to overseas customers, must be sold to EWC and will processed at its proposed LNG facility.
6. Financing of projects: The current cash ( approx. US$250 million) will be used towards the Sengkang LNG facility. Future projects will be financed from the Sengkang LNG facility cash flow, co-investments by third parties in specific projects (eg. possibly LNG Hub in the Philippines), bank finance (eg. possibly Queensland Gas Highway) and non-recourse project funding.
7. EWC will improve its information flow to its shareholders via ASX announcements.
Most questions raised related to the timeframe re: Sengkang LNG facility, Sengkang power station, Abbot Point and, last, but by no means least, the urgency for EWC to significantly improve its public information flow (ie. ASX announcements). After the formal discussion ended, Directors were approached individually and clarification was sought on a number of issues and the absolute imperative to inform shareholders re: each project’s progress was well and truly ‘hammered home’. I also had the opportunity to meet a few ‘hotcopper’ members, a most welcome and rewarding development.

Overall a very rewarding AGM and we will all be able to judge EWC’s efforts ‘on the ground’ once we see the expected ASX announcements during the next few months. These announcements should commence the transformation of this company into a significant regional LNG producer.