RZ has been working on Tassie Shoal for a long time. He says the gas can be blended to supply bothMethanol plant and LNG plant. It is an elegant solution to the CO2 problem even if the gas owners want to utilise Darwin LNG rather than Tassie Shoal LNG.
In 2015 there were 3 international methanol buyers offering to take 100% of the proposed output, but MAY couldn't get the feedstock.
During the quarter, MEO continued business development activities, engaging with potential gas suppliers and potential Tassie Shoal Methanol Project partners. MEO and representatives from one of its potential partners met with the Operator of the Evans Shoal Joint Venture. MEO and its partner reiterated that the previously proposed gas price of US$3.15MMBTU (Jan 2015 basis, raw unprocessed gas (including CO2) delivered to TSMP plant gate) was a competitive gas price on a global basis.
MEO’s potential partner outlined to the Operator its potentially pivotal role in aggregating international equity investment in the midstream methanol production facility, contributing operational support and contracting all methanol supplies in binding offtake agreements.
A formal meeting between MEO and the Evans Shoal Joint Venture parties is pending the finalization of agreed confidentiality arrangements.
MAY Price at posting:
2.1¢ Sentiment: None Disclosure: Held
