if you click on the post, it enlarges the image, and you can read the fine print at the bottom.
a few observations:
1. STO projects that Meridian will supply 445PJ over 20 yrs - that's an average of 60.96TJ / day!
2. the Meridian supply contract is the 2nd biggest of all the 3rd Party Gas suppliers to GLNG ! So it shows just how important the Meridian GSA must be. And that's despite the fact that 65tj/d is just a small part of the total GLNG gas requirement.
3 Point 3 in that slide seems to suggest quite strongly that STO is expecting the Meridian J/V to supply much more gas than the 65tj/d ?
4. point 4 says GSA starts in 2015, but Oil Linked pricing starts in 2016. So this confirms WCL statements that Meridian can supply gas on a short-term basis next year. And the feedback seems to be that the gas pricing in 2015 may well be above the oil-linked pricing which would begin in 2016.
so once we start pumping extra gas from these new wells, the pricing in 2015 will be lucrative.
and that explains why the announcement of funding proposals is so important to the value of WCL, because it will allow WCL to bring forward development and production, to take advantage of the expected demand and pricing next year during ramp-up of the LNG trains.
WCL Price at posting:
38.5¢ Sentiment: Hold Disclosure: Held
