In an example cited in the submission, Central points out that more than half the $4.80 a gigajoule transportation and processing costs to get its gas to the east coast would be collected by existing and mature pipelines that require no new investment.
I think this is the first time CTP has put a number to its transportation costs to the east coast. And it's more than I anticipated, I was thinking somewhere between $3-4.
They have previously said that the production costs are $1.50 ex-field so assuming there is no overlap (for example in processing costs) that is full production costs of $6.30, not including capex. That is bloody expensive gas and it's clear why $8-9 is the sort of price needed for this to work.
If they need to add significant capital on top of that (ie drilling new wells, new gathering etc) it would be even more.
If RC can get even $1 knocked off the cost of transmission, it becomes $5.30 and that is doable.
In an example cited in the submission, Central points out that...
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