You proably heard that QGC are building another LNG plant at Gladstone, making 4 to date.
collectively they will require well in excess of 10 million tonnes of CSG. While the companies proposing these plants seem to be sourcing the reserves internally, is their potential for MPO, ESG and the others to pick up the slack left by these. I cant see how exporting such a large quantity wont impact on internal prices or demand from other companies.
Even reflecting Mr P comments in another post, I cant help thinking that this development needs to flow on to other companies in the sector. I can see rationalisation between some of the smaller 'still explorers' to get to a 'critical mass' for both production and to move to production. Also I can see companies such as QGC, AOE, STo and others such as BHP and RIO purchasing the smaller companies to get a foothold in the energy sector for their needs. For example the alumina plant will need electricity which is generated by green gas so that company would be smart in taking interests in these companies to effectively 'hedge' there energy costs.
Hope there is a flow on effect for the sector as a whole.
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
