gas fired power stations, page-4

The failure of the CPRS, and Copenhagen, has not given the energy/utility sector the investment certainty it was hoping for.

But, unfortunately, the problems that these initiatives were designed to address - climate change - have not gone away.

So utility companies in particular have to make some hard decisions. What are we going to do about ensuring future production? You can't NOT make an investment decision indefinitely, just because the future is uncertain. All investment decisions are marred by uncertainty about the future.

And no one is going to be building any more coal-fired facilities, ETS or no ETS.


So, we have ESG with:

- reserves certainty, in less than 4 weeks
- economic gas flows from the (minor) Namoi seam, comparable to QLD
- forecast economic flows from the Bohena seam, with BW still tracking upwards as the massive reservoir is dewatered
- and the Concept Plan to be released 'shortly'.
- BUT, not the absolute investment certainty some players would be looking for, nor are likely to get.
- ESG admitting further commercial agreements on power-gen are being discussed (this will 'unconstrain' the current 2P limit)

All the pieces of the puzzle are shortly going to be in place. And, with a second round of reserves upgrades likely in the 1st Half also.

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