Ann: Erregulla Deep-1 Flowtest Commences, page-565

Haber is a dead concept for a while now. It was a viable concept while WA gas price was 2-3/GJ. It no longer makes sense with gas price over 8 given the substantial upfront capex needed (over 2bn IIRC). It made sense when gas price was low as the spread between local gas price and fertiliser price made economic sense. With that spread narrowing so much, it no longer makes economic sense.

IMO, one well isn't going to give the JV the full reserve uplift from the ED compartment. So in order for them to consider a plant upgrade, they will likely need to drill a couple more wells and then likely need to resubmit application for another EPA approval since larger plant/pipe/etc will presumably leave a larger environmental footprint. So I don't see that happening unless they can streamline the whole process without a prolonged delay to first gas for WE. Let's not overlook the fact that 20% of WE can be exported before Dec 2030. If bringing on additional production means 1-2 year additional delay, then WE could miss the export window altogether.

It will be interesting to see how the JV approach this if ED is successful.

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