Not a huge deal of discussion here, so far.....on developments concerning ENI seeking more gas supply for this major project. Seemingly a critical issue for MEO.... whereby ENI and NT Gov were hoping......a week and a half ago - to announce additional gas supply, for the RIO alumina refinery. (See story)
Why have the talks stalled, over supply ?... Presumably the NT Gov and ENI are referring to increased supply from the existing ENI Blacktip facility.....as this is what ENI said in that Sept Australian exploration and production update: (on the MEO website)
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"We encourage owners and explorers in the Southern Bonaparte Basin to come and talk about an expanded gas market in the Northern Terrority using Blacktip insfrastructure"
-------------------------------- MEO permit 454 adjoins Blacktip (we all know that)....but has the ENI/NT Gov deal been help up, due to issues betwen MEO and ENI.
Are these MEO (independant) assessments of gas within their permit 454, adequate enought to cut a deal with the Gov. ?
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The Marina-1 discovery independently is assessed to contain 3C* contingent gas resources of up to 302 Bcf and 3C* contingent oil/condensate resources of up to 29.5 MMstb.
The nearby Breakwater prospect is an LNG scale prospect with potential for significant liquids located near discovered resources with plans for development using Floating LNG technology. The nearby Blacktip gas field supplies the Darwin domestic market. The “gas only case” prospective resource estimate is up to 2.7 Tcf with 87 MMstb condensate (High case*) while the “gas and oil case” prospective resource is up to 2.4 Tcf with 276 MMstb oil/condensate (High case*).
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or maybe ENI are trying to secure gas from the proven Frigate and Tern gas fields......which is some 100kms futher to the north of Blacktip.
NOTE though, that ENI already own 10% of Frigate and Tern, so its hard to imagine why good communication and a deal could not have been put into place by now....if that is the reason for the deal.
Frigate and Tern are major potential LNG fields....it just may not suit plans of the stakeholders to be involved in this much smaller Darwin gas supply project.
There is very big potential upside here for MEO......being played out right now for the company. _______________________________________
Gove alumina refinery gas power talks drag on
By Michael Coggan
Updated Tue Dec 18, 2012 5:37pm AEDT
The operator of the Gove alumina refinery is waiting to hear whether the Northern Territory Government has been able to lock in a gas supply to power the plant.
Pacific Aluminium is considering temporarily suspending operations at the refinery next month because it is losing money.
But the Rio Tinto subsidiary says it would continue refining bauxite at its Northern Territory mine if an affordable supply of gas can be secured to power the refinery.
The Territory and Federal Governments have been involved in negotiations to find a supply of gas and build a $500 million gas pipeline from Wadeye to Gove so Italian energy company ENI could supply the gas.
Territory Chief Minister Terry Mills indicated last week he would make an announcement about the progress of the talks today.
However, an ENI spokesman says the negotiations are continuing.
MEO Price at posting:
7.4¢ Sentiment: Buy Disclosure: Held
