Morgan Stanley have upgraded their IOC recommendation, based largely on the recent announcement of the tie up with EWC (and their conversation with the parties afterwards)
http://shareholdersunite.com/shareholdersunite/wp-content/uploads/2010/09/LNGDEAL3.pdf
Good news - the analysis estimates EWC's 14.5% earning US$167m pa from each 2mtpa train. They show 4 of these trains being in action by 2017! Anyone care to estimate the eps impact of this?
Also, the HOA will include penalties if EWC are late delivering their agreed trains - which may also be taken as good news as it might force EWC to focus on making it happen.
It may well be the case that EWC are going to divert the "40 containers" of existing equipment, if the chances of using it in Indonesia are looking slim in the short term. IIRC the "40 containers" comprise just the first 0.5mtpa module(??) - if so EWC will need to get moving on ordering and financing the remaining equipment for the 1st train... especially if the eventual plan is to have 4 x 2mtpa trains!
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