Thanks Potts, and glad to hear of the optimistic tone of the...

Thanks Potts, and glad to hear of the optimistic tone of the conference you attended...a great way to keep up with the industry.

I haven't indicated any views on world gas prices - only that :
we need to distinguish between well-head prices and delivered prices - gas transport costs, I believe, $1-2 per mcf

there are likely to be at least four large potential suppliers of gas piped from the on-shore Canning in a few years' time: Mitsubishi, Buru, Conoco Phillips, New Std Energy...and perhaps other new entrants

there will be a similar number of producers able to supply gas to Perth from the Perth Basin

all of these potential suppliers will be looking for domestic markets

a large proportion of demand from by far the largest customer will be supplied under an existing contract with Buru - so there could be a scramble for the rest.

With more suppliers to the Perth market than buyers, prices won't be $10-16 /mcf. I don't think the Minister at the conference was thinking long term. If he was, I'd be delighted to understand his rationale.

Regards, and am enjoying this afternoon.