LNG and methanol prices are correlated and it will be TSMP that gets up and running first imho before any LNG gas leverages TS.
No floating production system, including prelude can handle gas with a CO2 content above 10% (absolute max). ENI and S&K have put a over a billion US$ into ES and Barossa/caldita for stranded high CO2 gas. meo has the demand side 3 x more than tsmp1 can deliver plus mid-stream JV equity partners meeting with es partners later this month (i.e. January 2015). So it all comes down to gas supply and ultimately price.
Concur, the biggest risk to meo pulling off TS is lack of cash and hence why neon merger falling over is not good. Let's see if another equity arrangement can be pulled out of the bag in time.
adl
MEO Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
