no hype, but is it in another pipe?, page-22

Hi Shamish,

Michael West’s article is just another of his shoddy, biased, uninformed and sloppy commentary in respect of EWC we all have come to expect. A pity really that the SMH continues to publish such comments for which a first grade uni student would receive a massive fail. I will illustrate this with just a few facts which Michael West got totally wrong and, had he read the relevant documents, would know that they are untrue. Given that I assume that he has read, for example, EWC’s Annual Reports, and, at least the relevant ASX announcements, the question that comes to mind concerns the reasons why Michael West continues with these totally twisted fanciful stories. The answers I can come up with are as follows: either he does not want to or cannot remember any facts that do not support his biased stance or his agenda is anything other than offering a truly critical piece of journalism. The following illustrations may suffice to make my point:

Michael West:
No matter that EWC has a sharemarket value of $520 million, no matter that it has made a raft of fanciful claims over the years about building LNG facilities which have never come to fruition, EWC didn't win the tender, EWI did…… But the people of Jamaica can thank the ASX. It would be uncharitable for the ASX to be viewed as the most prolific publisher of fairytales since Hans Christian Andersen - a stock exchange can hardly be expected to vet every announcement filed with it - but companies can say pretty much what they like. It is via the ASX that EWC has showcased its projects, traded its shares and raised its equity capital. Over the years, EWC has told the ASX it has been building LNG plants in Indonesia, Australia, the Philippines and Papua New Guinea.

Fact:
EWC never made any claims (other than relating to its Sengkang LNG facility and the Gilmore LNG plant) about building LNG facilities. EWC only ever announced that it has proposals to build any other LNG facilities and considering the feasibility of these projects. The only reference about constructing a LNG facility was done in relation to Sengkang which, as we all know, is well and truly on its way to construction being completed and to Gilmore, where construction is progressing..
In its 2013 Annual Report, EWC refers to the Abbot Point LNG project as a “…project the feasibility of which we are considering”. (p42). We know that this is true (see earlier posts re: submission to Federal Government).
Convenienty, Michael West ignores the fact that EWC is actually constructing a LNG hub in the Philippines as well as commencing construction of its 600 MW power station at Pagbilao.

Michael West:
There is no public evidence it (EWI) is a ''pioneer of modular LNG development'' as purported on EWC's website, nor of its 25-year track record in building power stations.

Fact:
EWC makes no such claims on its website. In fact, on its website, EWC states that:
EWC developed their expertise in producing LNG and transporting LNG by road in the harsh conditions of the Australian outback. EWC is a pioneer in developing the concept of mid-scale modular LNG plant.

Michael West:
They (EWI) lodged their bid late, and straight to cabinet, causing quite an outcry in the Caribbean island. ''Highly irregular,'' said Opposition Leader Gregory Mair.

Fact:
On 16 April, 2014, the opposition Jamaica Labour Party (JLP) welcomed the decision of the Government of Jamaica to grant a licence to Energy World International (EWI) for the establishment of a new power plant.

Michael West:
We also confess to a touch of apprehension for the poor people of Jamaica who already suffer high energy prices and low incomes.

Fact:
Yes, Jamaica’s current high energy cost (US 40 cents/kwh) significantly contribute to Jamaica’s inability to attract foreign investment, However, do not link EWI with this situation. Currently EWI does not provide any electricity to Jamaica. Once, EWI’s power plant becomes operational it will sell its electricity to the Jamaica Public Service Company Limited (JPS). On 24 January, 2014, EWI executed a 20 year PPA (effective on the issuance of a licence) with the JPS for the supply of electricity not exceeding US 12.88 cents/kwh . This means that EWI’s power plant will reduce by one-third, Jamaica's energy costs which, currently stands a at US40 cents/kwh.