why low POO great for Australian LNG, page-9

ADl, thanks and concur.

But, my comment is more around Meo needs to concentrate on a long term strategy but becoming more self reliant in the short term as the current stratgy is not working.

If you look at Browse, initially that was a 15 mtpa onshore LNG development that has now been shelved. The participants are now looking at a LNG floating production system development there, but have shelved their FID decision by another year because of low oil prices.

Whilst TS might have lower capex than LNG projects per se on a per tonne basis the low oil prices would also impact viability for methanol devlopments of this type as well (albeit may now force potential LNG producers to more seriously look at alternative development options such as producing methanol via possibly a TS option or their own option). But, most currently proposed LNG developments around are for a 15 mtpa plus proposed production target, so not sure whether methanol production has been proven in offshore areas at this equivalent LNG production rate - the current TS proposal doesn't appear to be anywhere near this equivalent LNG capacity rate (TS is about producing 1.75 mtpa of methanol). So a key here is whether methanol capex/capex technology can actually provide a competitive alternative to LNG as producers too me don't appear that interested in fostering small scale LNG developments, i.e. 4mtpa or less (and by default looking at small scale methanol developments). Most LNG production is either done by publicly owned companies (Qatar) or by larger scale multinationals (Shell, Woodside, Chevron etc).

So my bet is ENI will buy out more prospective tenements around TS, and then because of CO2 opens up a true competive methanol option of a scale similar to the types of LNG developments the multinationals are after (lets hope ENI can prove up the methanol process to achieve this equivalent production target and then yes TS is in their with a big bang - but this will take time).

To Fred I think who raised this issue, the Darwin LNG project has both a incorporated JV structure (which apies to the onshore LNG facility) and unincorporated JV structure (the pipeline from Darwin to Bayu Udan field). In bith structures ENI has a shareholding.

Meo needs to think about how it is going to survive in the interim and the current management are ill equiped or clearly incompetent to understand that TS is not their saviour in the short term.

And even if their was a takeover offer for eo at say 10c (and this price is a long way off from the current price so am using it as a hypothetical here) is that there will be a lot of losers on the Meo share registry, so not sure why they would be happy anyway. Bring on a better vision/strategy please.