Does anyone have any background on the story in the Australian today about the NEGI? Its only a short article and a bit vague but its main point is to suggest the pipeline might not go ahead. To me it looks like an attempt to stir someone into action to provide a meaningful update on the project but I could be wrong. There's not really much substance to the article but any news about the NEGI not happening does make me nervous for CTP.
The main part of the article is copied below for your info.
The process to find a builder for the Northern Territory government’s proposed gas pipeline project could be losing its momentum, with uncertainty around whether the green light will, in fact, be given for the project to proceed.
Four companies had been short-listed to build The North East Gas Interconnector, a $500 million pipeline pumping gas from the Northern Territory to NSW and Queensland that would help meet east coast energy demands. APA Group and Jemena are viewed as the most-favoured candidates in the Lazard-run process.
The other contenders are Merlin Energy Australia and Duet.
However, it is not certain when the Northern Territory government will determine what company would build, own and operate the pipeline — or whether it will in fact proceed at all.
Sources say the project would require a 20-year take-or-pay agreement to guarantee the demand. APA Group already had an existing Northern Territory pipeline that it could connect in to the network and it would probably be able to construct the pipeline at a lower price than its rivals, sources said.
CTP Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
