erm vs. lng, page-3

Have to agree Lilac, been scratching my head whilst on holiday as to why ERM would want to take a stake in MEL, a hedge against rising gas prices by taking 6% in a listed gas EXPLORER with stranded assets doesnt seem to be a very effective hedge to me. Last time i checked ERM werent a listed investment company. You would think that if there is a JV pipeline or plant deal in which ERM is taking on significant equity participation it makes perfect sense to take a significant stake in the partner to ensure that a predator doesnt come in and jeopardise your JV investment. Doesnt matter how well you draft JV agreements if the two parties cant work together then it spells operational disaster. Further it is a serious statement of intent to a potential partner to get onto the register as a sign of long term commitment, exactly what LNG did after signing the MOU. ERM dont seem to have a NSW presence- why wouldnt MEL be a great opportunity to get one especially given the medium term dynamics of the NSW gas market?

The mad mad rush by LNG to get to its circa 9% interest regardless of VWAP point of entry post the ERM buying seems to me to be a concern on their part that something is up with ERM. All pure conjecture of course, but MEL has always said it had many parties knocking on their doors...