The UGS project that MOS is developing swill hold about 75pj of gas.
This is almost enough gas to feed an LNG Train for a year!
refer Arrow release 16 April 2009: "The project is expected to produce up to 1.5 million tonnes per annum (mtpa) from the first train and consume approximately 90 petajoules of gas per annum for a 12-year period. A second LNG train of similar capacity is also planned."
So this is why CSG coys will be vitally interested in this project - as they have to do something with their gas during the ramp-up phase. Evidently, when they dewater the wells, and get gas flows to build-up, you cannot turnoff the flow valves, because it damages the wells and/or they don't return to their pervious flows ( and I guess it allows the water to build up again in the wells).
SO having a UGS faciltiy would allow the CSG coys to retain their valuable gas product.
cheers
MOS Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held