Cashflows from 10 TJ/d? And only half of that 10 TJ/d is AWE's...

Cashflows from 10 TJ/d? And only half of that 10 TJ/d is AWE's share.

We don't know what the sales price to Alinta is but given WA is in glut due to the reservation policy it's probably no more than about $3/GJ. At $3 revenue from 5 TJ/d is only about $5M per year.

You will lose half of that in opex and overheads so maybe $2.5M per year in operating cashflow.

Stage 1 alone cost $9M net to AWE and that was refurbishing an existing gas plant. Stage 2 is a tenfold increase in capacity and will require a new build gas plant. So no, I don't think Waitsia Stage 1 is going to come anywhere close to paying for Waitsia Stage 2. I think they will have to either raise equity, take on debt, or farm down the stake.