that evasive initial supply..., page-13

I'm not in any way down ramping and did indeed hold LNG for a while but changed my mind preferring to own the gas rather than a technology I did not understand.

MB has stated that nobody will sign a GSA with LNG until it is in production.

Everyone is standing back until the first lng-ship sails down the newly-dredged River in early 2015.

And that includes MEL.

MEL have myriad realisable options and stonewall any questions (as I did recently) that are put to them regarding LNG.

MB understands this and despite owning 12% assures us that MEL's decisions will be in the interests of its s/h, board and management.

MB is a very nice, jovial man and I might add - a bit of useless information - is a frequent visitor to MEL's Sydney office and attended their AGM in November 11

LNG/HQ has no choice now but to buy a small gas exploration/production company (just add a couple of hundred million to the billion LNG/HQ are going to spend anyway) and by owning it secure gas supply for Train Uno and hence the FID.

As I understand it, to have FL in production by end 2014, LNG has to make the FID sometime this year?

So there are 2 big questions IMO:

The first is the lack of time.

WCL will drag negotiations out to make MB - an old man in a hurry - desperate for a deal.

The second and bigger biggie is a lack of certainty.

The Chinese - don't like to be hurried, take a long term view of things and never overpay.

Will they support him?

This is very delicate and uncertain for all the parties' concerned.

hs (rA)