One of the critical issues in getting export LNG going here is the access to production systems and port terminals. This project represents an opportunity to leverage Woodside, who has the only other export LNG terminal in WA, on COP agreement and security of supply. According to
The most alike solar powered plant in Australia would be the Kidston plant in Qld - 50MW, built for 115m AUD.
For a 1.0mtpa plant solar powered, you'd be looking at 220m AUD plus additional costs est. 20% so 265m AUD. remember that NWE have bought access rights to a built plant for TOLLING, not ownership of the plant, so NWE are providing security of gas supply to the economic model in return for funding the feasibility assessment and tolling priority.
If you're looking at very basic numbers, $500m in revenue to pay the plant off for the owner and make a tidy profit represents ~$1 AUD Gj tolling for NWE. Add export costs, gas processing through MIN's terminal on site and piping to the terminal, then you're coming in at around $7-8 AUD to get it to the spot hub in ASIA. Same price as Mitsui and Woodside and same market, with priority access to the LNG processing terminal.
Mind you, the 0.5mtpa terminal in Shaanxi has been running since 2013 and the Technip has built more terminals since then, so concept is not the problem for me. Two main issues going forward, getting environmental approvals completed for the terminal and getting export approval from the state, but this third pillar looks promising!
NWE Price at posting:
4.8¢ Sentiment: Buy Disclosure: Held