If it was so easy one has to ask the question why it was not done earlier???
EPG has been such a long journey I think I have forgotten more than I remember.
This is what I remember (whether it is right or not is another thing lol):
1) Early on when Gazonor was bought by EPG there was a long term gas sales contract in place for local industry at pretty unfavourable rates ... therefore not conducive to ramping up sales.
2) Also, at the time, there were restrictions on the amount of lower calorific value CMM that could be distributed thru existing pipelines ... therefore also not conducive to ramping up sales.
3) During those times there was talk of using CMM to fire electricity generation as a means of ramping up gas sales, particularly as French regulations regarded such operations as greenhouse gas abatement and offered very attractive rates for the generated electricity ... I suspect funding issues got in the way of developing this option in the time since.
4) I understand the original gas sales agreement has been or can now be renegotiated and I understand that more CMM is now permitted in the existing distribution pipeline network ... this is more conducive to ramping up gas sales.
5) Gas supply is now a more widely recognised issue in Europe than it was 5 years ago imo, and it is in French Govt interest to co-operate in removing red tape to allow Gazonor access to more sealed shaft/wells to access more CMM ... this is more conducive to ramping up gas sales.
Cheers Dex
EPG Price at posting:
45.0¢ Sentiment: LT Buy Disclosure: Held
