Nice work today WendellI have mused about the "over horizon"...

Nice work today Wendell

I have mused about the "over horizon" option quite often since it was first announced.

It always made sense to me as:

1. Pipeline capex for a pipeline to the coast and for 30km offshore can't be sigificantly different than a 125km Lions Way Pipeline.

2. Life of project opex for the "over horizon" pipeline has to be significantly cheaper than opex for the Lions Way Pipeline plus transmission (rental) costs for using over 500 km of other pipelines to Gladstone.

3. There are no land acquisition costs and investment in fixed LNG plant at a location like Gladstone.

4. A partner like Total can certainly fund the billion or so bucks required to develop a (Flex or other technology) floating LNG production ship that could dock to the end of a MEL offshore pipeline.

4. A partner like Total would totally (forgive the corny pun) appreciate the security of being able to take that ship somewhere else if there were (God forbid)unexpected gas supply issues from MEL in say 10 years ... I see the advantage in not investing huge sums in fixed assets like an LNG plant in Gladstone.

5. The NSW Government would surely have the stimulatory "get out of gaol" card it desperately seeks with a completely state based export development project like "over the horizon" on the NSW north coast.

Food for thought anyway.

Dex