Following my phone discussion with EWC earlier this morning, my understanding is as follows: 1. Friday's (28 Aug 09) ceremony in the Philippines re: LNG hub and power station has taken place. 2. Sengkang power plant expansion: BPMigas still has to approve gas reserves in order for the power plant expansion to be formally approved. Pressure, from the highest Indonesian authorities as well as the governor of Sulawesi and, obviously from EWC, is put on BPMigas to 'sign on the dotted line'. EWC expects this to happen shortly. Once BPMigas approves, the turbines will be shipped. 3. Sengkang LNG project: all necessary site works, including foundations for mobile trains are finished. The required report re: gas certification for Sengkang LNG project is just about finalisd. Once this report is ready, BPMigas has to approve for LNG project to go ahead. Modular trains, ready for shipment, will then be shipped to Sengkang. Strong interest to buy LNG from Sengkang has been received from Indonesian, Japanese and Chinese parties. It is clear that EWC will contract some of this LNG (eg. 1.5m tpa to Indonesia) and some to its yet be built power station in the Philippines. Due to the currently low LNG price and an expectation that LNG price will rise significantly in the future, EWC is not keen to enter into an LNG contract at this point in time. 4. Abbot Point LNG facility: Thursday (27 Aug 09) meeting at Bowen with interested party was well attended and EWC is currently seeking expression of interest from third party gas producers to deliver gas to Abbot Point. Negotiations with land holders re: gas pipeline has commenced. A specific site at Abbot Point re: LNG facility as not yet been finalised as a few earth works still need to be undertaken. Project is progressing well.
EWC Price at posting:
48.0¢ Sentiment: ST Buy Disclosure: Held
