LittleMak I know that you believe that cnx has the potential to become a big co. I too am a believer but I am not sure of the timescale. The company has signalled its priorities for monetisation of its process - first priority electricity generation and natural gas. These relatively low value uses apparently the shortest timeframe and will bring the co. some much needed cash flow. Higher value uses (chemical feedstock production) and possibly gas to liquids will follow. The syngas could be cleaned up (remove unwanted gases) for the Gladstone LNG story - it's a matter of economics. I understand that the company is exploring the economics.
The company has made its assessment of the energy equivalent for its current Queensland coal reserves but to the best of my knowledge, an industry methodology (internationally accepted a la JORC) does not yet exist, although I understand that the Aust industry is working on it. It would be helpful to have an "official" energy resource estimate a la CSG.
The 5 MW plant will keep the office lights on (lol). The 20MW as I understand it reflects Queensland State government's present policy which is apparently to be reviewed in 2011-2012. How quickly they can move beyond the pilot 20MW will no doubt depend upon how Queensland State Govt. views UCG and when it gets around to doing so. The Zerogen story would seem to offer potential opportunities also. Why would you gasify coal at the surface when you can produce it underground much more economically?
The Centauri power plant is clearly important to the short term cash flow story. Let's hope that Eneabba comes up with the goods - and soon. As far as I can see, major growth for the company will only occur once the higher value projects are approved although a breakthrough in India should imo give it a boost. I would have thought that UCG projects would take a relatively long time to get off the ground given the approval process (environmental etc). My conclusion is that the company is likely to have a very bright future (barring market collapses) but that it will be a "slow burn" for a couple of years.
Does anyone have any idea why cnx will not be speaking at the Global UCG Summit in London this October> I see that lnc and cxy are both represented - see website http://www.iqpc.com/Event.aspx?id=194306
Good luck to all holders Cheers Temp
CNX Price at posting:
39.4¢ Sentiment: None Disclosure: Held
