fishermans landing, page-3

goodaye,
i was going to post a note, but Maddoc was way ahead of me.
I agree with maddoc that we should not rule out BOW in a F/L participation in some form.

On a really, really basic level, for an LNG project to proceed one would need:
- prospective ground
- reserves or real potential to get to those reserves)
- capital to develop those reserves
- infrastructure ie pipelines
- capital to develop those pipelines
- site for LNG plant (incl approvals)
- LNG plant
- capital to develop that plant
- offtake customers
- technical and mgt expertise to handle each of the above
- obviously end product needs to be economically viable

BOW mgt seems to be real go getters and ambitious.
A 30mw - 40mw is small beer compared to a 1.5m/t LNG export facility.

So from above list we could conject:
- BOW has or probably will have the reserves.
- capital to develop those reserves could not come from BOW realistically, because mgt and s/h would be diliuted to almost nothing. But BOW could readily organise dev't capital by farm-out to a party such as O/seas customer. that's one leg of the picture.
- pipelines are being proposed by Arrow and others, which pass close to BOW permits
- capital to develop pipelines could be raised by funding from 3rd parties such as APA et al. I think Arrow used this funding technique.
- site for LNG plant - F/Landing already there
- F/L project is already well progressed and FID was expected shortly. Project had been accepted as technically viable, with LNG Ltd expertise evidently satisfied. So physical plant operation, construction and processing appears to have been accepted.
- capital to develop plant- we have seen numerous players join LNG projects as equity parties, in order to grab certainty of supply, and also participate in prod'n profits: eg Sojitz, Golar, Mitsui, Itochu etc etc
- offtake customers would be the equity providers above
- technical and mgt expertise for each leg would be provided by participants. I would imagine BOW would not have expertise to construct/mge/operate LNG plant.
- economic viability obviously is big issue, but if viable for Arrow, one would think BOW could structure a scheme which would be viable.

Remember, BOW has probably the biggest uncontracted reserves left in Qld, so would be tempted.

The whole LNG project could be compartmentalised as a series of J/V where BOW has a bigger equity share in upstream end, and smaller share in more capital intensive end of the LNG plant.

I will bet RP is crunching numbers, and I will bet LNG Ltd has spoken to BOW already.

I like the idea of BOW as a mini Arrow! no pun intended.

cheers