Yeah he will most likely reduce the size of his plant but I very...

Yeah he will most likely reduce the size of his plant but I very much doubt he will go through with 30TJ/d. How many wells are/have they drilled at Lockyer? 5 or 6 going to 10? Why would they invest that much upfront sunk capex to only produce 30TJ/d? They can probably produce that out of 1 or 2 wells for a fairly long time. CE knows that WA gas price isn't as bad as what it used to be, and the spread between domestic spot and LNG netback isn't as large as what it used to it. With dom spot price set to gain further upside on supply tightness, it would make sense for MIN to build a plant that is double their own internal needs. That way, half the daily production can be used by MIN while they can sell the other half to help pay for the sunk cost.

Given the margin pressure MIN will be experiencing on both the iron ore and lithium front, the margins they will enjoy from gas will be godsend even at dom prices.

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