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Incredible! Thanks Mrmoshe/aimfor simon/terryl for posting this....

  1. 95 Posts.
    Incredible! Thanks Mrmoshe/aimfor simon/terryl for posting this. I recommend everyone reread the article postings slowly on this thread as I just have.

    What I got out of all this is the fact that Chevron and Woodside seem like they are practically racing each other to get through FEED on Wheatstone/Pluto stage 2 respectively, and with good reason.

    I think this could be time to introduce fresh research...

    That's right folks leeeetttsss get ready to ruuummble!

    In blue corner you have Woodside's Pluto project (4.4 TCF) and it's sister field Xena (.6 TCF) so Pluto total = 5 TCF.

    In the red corner you have Chevron's Wheatstone project and it's sister field Iago which have 4.5 TCF total between them.

    Yesterday USA time (today our time)Chevron awarded FEED contract for a domestic plant and two LNG trains with carrying capacity of 4.3 million tons each so = 8.6 million tons per annum total.

    Pluto is set to become the world's fastest-developed LNG project to date, from the discovery of the field in 2005 to the production of first gas in late 2010. The gas will be processed in a single LNG processing train, which has a forecast production capacity of 4.3 million tons a year.

    So Pluto 5 TCF with 1 train 4.3 million tons production capacity per annum VS
    Wheatstone with 4.5 TCF with 8.6 million ton P.C.P.A.

    This tells me that Iago may have been revised up in TCF but I have not found the exact number thus far if this has occurred. (Feel free to help) Or more likely they are planning on third party gas to help underpin project as stated...ENTER MEO's Artemis!!!!!!!!

    See you knew this post would be highly relevant in the end. Pluto arguably needs Artemis gas even more, to enable adding more trains to their one train project that is looking like the minnow in the region right now.

    Remember the more trains = lower costs on relatively not much more infrastructure which = higher profits. (And of course more revenue and profits in total due to more gas!)

    After so far thinking Woodside/Pluto would be the front runner on the 50 percent farm in on Artemis, I can't help but think that Chevron/Wheatstone may be the dark horse given this new bullish "two train" 8.3 mill ton P.A FEED they are now doing. To give this perspective, Chevron's 50 percent owned Gorgon (40TCF!) is only going to produce 15 million ton P.A (three trains) at this stage and that will be the new biggest resource project in Aus at a probable 50 BILLION CAPEX!!! :-0

    I say 'only' because Wheatstone's 2 train's compared to Gorgon's 3 trains doesn't add up given Gorgon has 10 times the gas. Can you say, Artemis + Wheatstone = 2 trains? Or substitute Wheatstone in that equation for Pluto and you get PLuto train two and even Pluto train three they've spoken of recently!

    Finally, Key Points:

    Pluto will be producing end of next year and Wheatstone in about six years if all goes to plan. Asian demand for LNG is forecast to double by 2030 and Chevron are already lining up customers for Wheatstone gas!!

    All of this, particularly Wheatstone, is being pushed along by WA government's 'use it or lose it' philosophy on gas tenements. Also if Artemis does turn out with around 10 TCF, that could be a massive project by itself, and so it really could thumb its nose at the nearby projects if the major farm-in partner has the money and the inclination to go it alone just as Pluto and Wheatstone both are with their powerful owners.

    Wheatstone is connected to Artemis, and Pluto is right next door so they are one big happy family. North West Shelf (Australia's biggest resource devel) with 33 TCF is just 85 km north east of Wheatstone/Artemis, Jansz just west of Wheatstone/Artemis has 22 TCF!!! Gorgon just south west has 40 TCF!!!

    In other words Artemis would have to be in the middle of the most glamourous location for gas in Australasia. It doesn't guarantee gas, but being SO CLOSE to Wheatstone and with a target of 9.5 TCF and possibly rising, which is Wheatstone/Pluto totals combined, the upside may not have even begun at this point.

    P.S: Hot off the press- USA 2nd quarter GDP -1 percent compared to -6.4 percent in the 1st quarter. If USA economy is slowly beginning to mend, the next China-led Australian resource fuelled economy expansion may make the glory days of 2006 look like practice. Once China restarts it's engines and industrialises in earnest again as Japan did 50 years ago, the benefits for Aus resource companies and Aus generally will be unbelievable a year or two from now.

    Goodnight all!
    GenY
    ;-)

 
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