LCK - FA - KJ, page-32

@nht

You have mentioned the distance factor and the cost factors as reason why this isn’t going to work. You mention the fact that this will have a reasonably significant CAPEX bill - could you enumerate how much CAPEX do you expect a plant for Urea production would be and why? Couldn’t it work like a JV with the likes of IPL or another fert producer - like any other O&G JV where a smaller player farms out to a major once a discovery is made?

What is clear is that EC Nat gas prices are high and by 2023 the EC gas market will have a significant deficit. There are already 4-5 projects for importing nat gas and when people are talking about importing - all costing billions of $$$, exposed to the spot Asian Nat gas market which can spike to $20/GJ.

They have significantly derisked the environmental/technical risk. This seems a much cheaper alternative than importing Nat gas imo.