the bi polar ant, page-9

Good thread guys. for the record

1. i think the more recent deal is a far better one for LNG. I think AOE have invested too much to let Fishermans landing fail and they have had to take on the whole project. AOE now have all the financial risk. we have de-risked with an upside (albeit reduced) if the project succeeds. So "reasonably" happy!
2. i agree with Rule that the FID will be delayed and that AOE never intended to take over LNG
3. on the MOU and Toyota, if toyota are having reservation now is the time they could get out. the MOU with LNG is dead and a new one needs to be negotiated with AOE. you would expect that nothing will change and in fact toyota should feel more comfortable with AOE being in charge of funding construction. - the supplier/transport/buyer hasnt changed so I am confident that nothing will change on this front.
4. Maldowl there is a risk for LNG that Shell takes over AOE and scraps the project to focus on Curtis Is and i agree with Rule that i doubt Shell would have any use of us or our technology. But as Pete points out, if there is a buyer why not put the plant in. All the ground work is done, it is far more advanced than the other projects, it is smaller and cheaper. you get to test the waters on the marketability of this new LNG product. There is enough gas to service FL and Curtis. On the legal question rule, if Shell takes over AOE it assumes AOE legally binding contracts thereof it will need to use its best endeavors to honour the agreement, unfortunately these agreements often have a raft of escape clauses (as we are seeing at the moment). So if Shell ditched the deal we would probably be left with a nice bit of dirt in Gladstone port with no gas supply and a legal action to fight.

5. Ultimately i'm with Pete both in view and shareprice. I hold because i believe AOE (or shell) will complete this project - not by the estimated time or cost but they will complete.

6. as to LNGs other projects - in my view rule without Fishermans Landing we have nothing but a potential technology. we need this as our flag ship and we need this new form of LNG to be accepted as an alternative fuel so we can target the midscale project around the world.

alright my head hurts. and so do my eyes when i look at the SP.