Origin has the best 2P reserves position of any of the projects, and yet the worst in terms of customer. How are we to view this apparent contradiction?
And now, we have Grant King publicly calling for 'consolidation'.
Conclusion - ORG wants to sell/merge/consolidate into one of the other projects. And so too does its debt-laden JV partner.
What other reasonable conclusion can we draw?
ORG benefits from the QLD LNG projects, whether they have an LNG project or not. LNG forces up the parity price of domestic gas (and gas-fired electricity) on the East Coast, which is ORG's core business. ORG gets a 'free-rider' benefit.
Perhaps what ORG would really like is a gas resource more geographically central to the majority of its domestic customers. And it can pay for such a resource by 'consolidating' into those multi-nats' projects, for whom LNG is their core business.
Yaq
ESG Price at posting:
82.0¢ Sentiment: Buy Disclosure: Held
