Disagree with a fair bit said here. A) new wells are the cause of gas growth initiative, so even if waste methane gas is variable you will find a stable supply come from these wells. Most of the new gas anticipated is from new wells. Treat the waste gas almost like bonus extra gas at little to no cost ($200k to connect to the system roughly). B) turbine is getting a major overhaul and being converted in March, so the next point is invalid. C) the gas being a stranded asset is a problem if your objective is to export it to Gladstone yes... which they are not in the short-medium term aiming to do. Managements target is for a portfolio of peaking gas generation, which can be built into the system they currently have if they do develop future peaking generation projects. Management said that connection to Gladstone is a long term goal but not being considered at this point, it can only be considered if they get considerable gas reserve upgrades.
Storage could be an area of concern as it will be deployed at peaking times yes, but how much can be stored and then deployed at peak regularly is a different question.
QPM Price at posting:
5.7¢ Sentiment: Buy Disclosure: Held
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