Bad news, why? There is demand for 2 million tones domestically...

Bad news, why?

There is demand for 2 million tones domestically in Australia. Who's to say that LCK will even supply the Australian market? If better shareholder value is achieved by exporting it, then this could be the option taken by management.

Strike's been a successful company, and if their Board wants to pursue this option, it's up to them. LCK have a 2P reserve, their final Licence, and will begin erecting the 5MW power station to supply the urea plant shortly. Strike have none of these things, and are well behind LCK. Notwithstanding, no one will ever be able to compete with LCK on price. If Strike end up going ahead with this, they will have access to cheapish gas and could still co-exist will LCK, albeit making smaller margins. Remember that Strike would still have to convert the natural gas to syngas.

You might want to direct the Bad News thread to IPL..

LCK getting their gas for roughly $1 G/J, Strike (after conversion) $5, $6, $7+ G/J???, Incitec Pivot (after conversion) $8, $9, $10+???. Does Gibson Island even have gas supply beyond 2022 yet??