I guess that is why i mentioned AGL. I think there is a good strategic fit with what ESG has.
Something that we should not forget is that under an ETS, gas fired demand will likely increase. Most of the current gas plants are just peaking plants and only make a small portion of the market. Moving to widescale CCGT implementation will see the need for domestic gas supply increase significantly.
Unfortunately, no matter which way you look at it, it is a world of diminishing sources until the world wakes up and realises that solar and its is the only tru renewable source.
Simply put, as the cost of power rises, other sources will become much more desirable - natural gas is the next in line and the all the major upstream companies know this and are preparing accorgingly.
BG were very aggressive and did have a complete cash offer.
The key aspects of the NSW Privatisation is the retail (think distribution/end user management) and future generation sites could be sold. This makes it attractive to the likes of ORG and AGK because they can expand their base and control.
The way you have described is the way I see it. Control the cheapest source and be the most profitable generator in the market. Might be worthwhile reading a little about the AEMO /
Cheers,
SF
ESG Price at posting:
80.5¢ Sentiment: Buy Disclosure: Held
