rrt - the age, page-10

The major impact of the the new resources tax regime is the uncertainty it creates.

Margins on planned projects will be reduced resulting in deferral of FID's on several projects. In particular STO's GLNG. Investors and lenders will not commit until they have certainty.

Rudd and Swann have got their headline for the voters for the electorate. In the interim, investor confidence wanes and ESG's share price will fall as a cloud hangs over STO's GLNG plans.

It is likely the level of the proposed SPRT will be wound back after negotiation with the mining industry. This could tale 12 months.

Its highly likely the share sell off is an over reaction, however, if I was planning on spending $10 billion on an LNG project I'd want certainty in relation to the taxation regime.

At best STO will delay FID on GLNG. ESG in the meantime, will have to continue to prove up reserves and explore options to market its gas.