mel announcements, page-31

The "diversified" csg fund for NSW is rapidly becoming less diversified considering the proposed DTE/AZO merger.

From the DTE ann : " The proposed combination with Apollo is in line with Dart's strategy of focusing of resources in close proximity to high growth gas markets exhibiting strong upside in both demand and pricing so being capable of early commercialization " .

The relevance to ESG ? Two of the regional competitors potentially becoming one. So the major land holders in the region are STO, AGL , ESG and DTE. Surely as the consolidation happens , the likelihood of LNG out of Newcastle has to be increasing ( provided the port can handle it ). As everyone's reserves are proved up , the argument for a large local plant has to be getting stronger. Considering that it is ESG who has the ball rolling on NLNG, I would surmise that this recent activity with DTE can only help strengthen the case for NLNG. When ESG first mentioned local LNG I was a bit skeptical. Now when I look at the tenement map of the Gunnedah and the potential gas resource contained within , it starts to make a lot of sense for a major LNG and gas fired electricity industry to be developed in NSW rather than running it all the way to Gladstone ( STO commitments not withstanding ).

You would imagine that sooner or later someone in the NSW govt will do the potential royalty numbers that are available and start fighting for a NSW gas industry !