re:re: Ann: major upgrade to Awe

Wpl is expanding its trading arm to compete with Shell-Bg t/o
Is it to late or too soon to build, to acquire or to buy GSC

Evidences showed that Wpl is expanding its trading arms.
. Wpl acquired oversea LNG import terminal, an article in Wpl forum.
. Wpl has joined forces with US companies to build another export terminal following the Chenniere' Serbin Pass terminal. There're 7 proposed terminals but only two have achieved milestones.
. Wpl is delivering gsc to Bg from July 2015 onwards at the Wallumbia's east coast trading hub.

To build
Wpl is doing front-end engineering for its Browse after WA Collin Barnett approved the project. But a FID investment is too far away.

If Wpl doesn't want to build a gas processing hub on the coast of Jame Point then Barnett is not very happy because the project doesn't support local workforces like the Itchthys project in NT

Browse doesn't make sense at this low price environment as you would normally see other majors park their projects for later use.

To acquire
Wpl did acquire quality assets from Apache, now Quadrant.

Wpl has always been an off-shore player but the US shale did make Wpl to think twice on how quickly ramp up production as well as shut-in production in bad times.

Shale players without any proven 2P are not in its sight. So let's hope on-shore is a game changer.

To buy
Wpl delivered a cargo to CNOOC with the decade old contract at the price that did suppriced me. It was USD$3.50/btu compared to the spot price at $6.80 last year.

Chevron is struggling to negotiate with the Japanese, article below in BPT forum

The Gorgon project is over budget at 17billions. It'll be a blow out for its shareholders if the project doesn't come to fruition in a due time. It's a fire sales.

Spot price has been a centre piece of discussion regarding to un- viable projects.

Redfork and Baraka were the two ASX listed companies who announced insolvency.
Redford is able to relist in ASX again like Marathon who is operating UCG in SA.

Bakara did stall a Betaloo's JV project with Statoil. Statoil is looking for acquisition with its tight exploration budget.

GSC is a must for a company to expand but one must be wary to depend solely in a single project.
Awe doesn't want to be a victim in case of over supplies because the super majors will in turn squeeze the third party suppliers.

Awe should look for local manufacturers like FMG.
FMGA had successfully covert all its diesel engines to gas. This would save $20 millions a year. There's a pipeline for the feed gas.
What would happen if all miners start to apply the business model like FMG.

AWE will be laughing to enjoy a movie in rainy days.