lateral ... as in thinking , page-4

One of the parties noted on LNG's Notice of substantial holding is CSG Nominees Pty Ltd. One reason for using a nominee company is to protect the identity of the ultimate owner of a security.

CSG Nominees is listed on LNG's substantial holding notice as it is a related party to LNG.

In drawring this long bow, LNG may be acquiring the shares in conjunction with another party such as Golar LNG.

I've been following LNG for some time having bought and sold shares several times. I do not hold any shares now. I lost faith in the management of LNG during a period where their relationship with Arrow Energy devolved from joint venturer to licensor of LNG technology.

Arrow contiually moved the goal posts on LNG and ultimately used LNG as a tool to force Shell to show its hand and take them over. In short LNG was royally screwed.

The purpose of the above background is to illustrate that LNG's management lost a lot of credibility in its dealing with Arrow. In addition they conducted a capital raising at around 80 cents prior to the debacle with Arrow. The shares fell well below 50 cents.

Having said all that, I'm assuming LNG's management will be very careful not to depart from their core business to facilitate mid-scale LNG projects and licensing their LNG technology to those projects. For that reason I think there's absolutely no chance LNG has made a speculative investment in MEL. Boards members of listed companies are very cautious beasts when their credibilty comes into question. They won't risk any further damage for the sake of a $6m speculative play.

What has me stumped is that piping gas in to Qld from MEL's fields is obviously economically feasible via the Lions Way pipeline, however, sending that gas all the way to Fishermans Landing in Gladstone seems a little far fetched given the substantial uncontracted reserves in Qld via BOW etc. I don't know enough about gas swaps that may facilitate these arrangements. But I assume the use of gas swaps would not provide sufficient control over supply to the operator of an LNG plant.

Assuming MEL proves up its conventional reserves complimented by CSG reserves makes MEL a very attractive proposition especially, as I understand, during in the ramp up phase for an LNG plant.

Finally, in light of the above, are there any other prospective mid-scale LNG sites closer to northern NSW? Is Brisbane as possibility? Is pumping gas to Gladstone from Casino feasible?

I don't know the answers but its very interesting to LNG Limited on the register.

Good luck.