Jembsb,
Offshore pipelines are always expensive, and in this case the shore crossing (almost certainly directionally drilled) and probably some expensive shallow water/reef stuff. Largely a matter of how many lay/installation vessels need to be mobilised, and from where. Unless the gas has problems offshore facilities would be very cheap and simple - it will be the pipeline and any extra wells that costs.
But for ARQ the beauty is if they can charge tolls to use their existing facilities - hopefully with little mod. Due to operational synergy most toll revenue will flow straight through to the bottom line. This applies even if the JV was operating at breakeven and the 6% bringing them nothing.
Better to be getting even 50 c/GJ tolls than 6% of say $2/GJ (say $5/GJ sale price - $3/GJ costs), which would only bring in 12 c/GJ to ARQ. I suspect the JVs margin will be less than $2 after CAPEX, and tolls at least 50c.
The JV is only going to make a decent return via the gas liquids imo.
However imo you would need to like the Canning to buy ARQ atm, and being geologically illiterate I have no view on that.
EL
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