Just to add to this, I believe the comment was also made that...

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sivart

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09/01/16

11:45

Post #: 16762494
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Originally posted by Bortgm ↑

And I also discussed the same point with LNG's John Baguley at the AGM. The schedule is so tight now, that if they want to get gas on ice by End 2018, they may decide to do some site prep works immediately after FERC approval but prior to FID or completion of BTA's.

Johns comments were that this would likely be around April this year and it would depend on the sensitivity of commercial delivery dates. In essence, if there was a milestone date of say Jan 2019 for first ship, then there is virtually no free float in the schedule.

Early works would likely be limited to geotechnical validation of footing requirements for structures to ensure the design could be completed and maybe some basic site prep works as Trav said, earthworks/roads etc. Typically these are slow cash burn and can be extremely sensitive to wet weather, so if you get a dry window you gotta use it. Money would come out of the coffers for this, my guess is that $25 m would get you to where you needed to be for a flying start after FID.

He said the critical path likely runs through the storage tanks which are essentially still a stick build (as opposed to the modularisation in the process area) and that they showing around 32 weeks on the master schedule. If you add 32 weeks to a June this year start then you are likely well into 2019 for completion.

Didn't have the time to quiz him much further about whether this includes commissioning or what allowances are in there for weather etc, but I'm confident that he's exploring options to start prior to FID. Not sure though that the project is viable at the 2mtpa currently signed, I doubt it though based on previous advice.

Also have seen a recent analysts report that stated EoN are likely to take at least another 2mtpa and maybe the whole 8mtpa. This may not be great from a risk mitigation viewpoint, but confidence is high that the project will get to a positive FID conclusion. MB alluded to EoN taking more at the AGM also.

It's hard, but we need to have faith and be patient. It's certainly tested my nerves though.

Go the Red Ant.

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Just to add to this, I believe the comment was also made that whoever it was who wanted gas in late 2018 was no longer in need of gas quite so early.

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Just to add to this, I believe the comment was also made that...

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