No one accepts Consequential loss in these agmts, so any lost cu/production is just that - lost rev to TGS. Contract Works only covers the construction period and as for Public & Product Liability, it usually only covers the construction and Defect Liability period (which may have been only 12 months from Practical Completion).
So Leec, you may find that this falls back to operations monitoring and maintaining the ponds in good working order. These things happen. The fix is pretty cheap also. The fact TGS have decided to build a whole new pond may indicate there are other concerns with either the quality of construction or the material choice (perishing at a faster rate than planned etc). Seems a little of an excessive solution though.
I'm happy holding. TGS will be swallowed up by a bigger fish. Especially in its current vulnerable state.
TGS Price at posting:
2.1¢ Sentiment: None Disclosure: Held
