ESG is cracking the whip on the NSW Government, (and perhaps Santos). Here is what DC-10 said in the OB a few weeks ago:
"This project represents a significant opportunity for NSW. This state is heavily reliant on coal for energy production and needs to diversify its resource and export base. ESG's experience suggests that, provided the project proponent maintains focus and provides information to the Department of Planning in a timely manner, the NSW project approvals process can be completed in an acceptable timeframe. To this end, we are already working closely with relevant departments and agencies and have enlisted the services of planning industry specialists to ensure our approvals documentation is comprehensive, high quality and welltimed.
Regarding possible expedition of approvals processes, ESG is aware the Queensland Government has been very proactive in encouraging development of its CSG to LNG industry and there are clearly strong benefits to this approach. It is important that the NSW Government support the development of an indigenous gas industry, particularly given the massive long-term benefits, in terms of jobs, environmental benefits, capital investment, royalty income, economic diversification and gas supply security that stand to be realised. There is nothing else of comparable size and environmentally-favourable nature of the proposed LNG project on the horizon for NSW and the opportunity cost for NSW of the project not going forward would be significant."
and then:
"There are two possible alternatives to export of LNG via Newcastle.
On one hand, ESG continues to actively investigate alternatives to LNG, for example, gas-toliquids or production of methanol. While indications to date are that these options are less commercially attractive than export of LNG, ESG will be ready to respond should this change. On the other hand, it is inevitable the opportunity will exist for gas to be piped north to be used as feed for LNG production at Gladstone. As a general observation, ongoing expansion of projects proposed at Gladstone will see significant economies of scale realised as infrastructure like ports and tanks is better utilised. It is ESG's view that gas could be sold to support expansions of this nature and we will actively monitor such opportunities.
Ultimately, our singular focus is to achieve the best outcome for ESG shareholders. This necessarily involves a balance between the price realised for gas sold and how quickly it can be realised. While ESG presently have the view that an LNG project at Newcastle is viable, we maintain an open mind." [my emphases].
Yaq
ESG Price at posting:
83.0¢ Sentiment: Buy Disclosure: Held
