Jemena Pipeline Update, page-3

kiwitrev

Not investment advice of course and readers should verify the montage for themselves.

I have a significant holding in GLL and may well increase it.

IMO the GLL proposition is almost entirely dependent on the success of the current drilling initiative compared with NT investments which are a lot more complex.

GLL have taken the logical step of entering into an MOU with Jemena on the pipeline and it is clear that Jemena are putting serious work into the necessary up front approvals prior to FID (Final investment decision) in the near future.

This will inevitably reduce the pipeline completion date if  Jemena decides to proceed after FID.

My model for GLL with a round $500M of amortised infrastructure development and 200TJ/day down the pipe to Wallumbilla combined with rising international gas prices gives a very good result for GLL.

As far as I know GLL has a share register that is pretty hard for a takeover to penetrate without an attractive offer and I certainly won't be giving mine away.

Prefer not to comment either way on the effect of the NGP extension on CTP on this forum but I don't see any significant impact on GLL from that direction.  

The following is a montage which I use to help everyone think out the pathways to market.

I refer to the NGP as NGP1 & the proposed extension from Mount Isa to Wallumbilla to Wallumbilla as NGP2


Best Regards

NGP