Re the Tanami Pipeline. Some information below comes from the...

Re the Tanami Pipeline.

Some information below comes from the 13-14 June 2018 Credit Suisse Annual Australian Energy Conference and readers should note the caveat contained in the presentation commencing " This presentation is not intended for prospective investors..." and  DOYR.

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As I understand it:-

• The PWC has already beaten for the contract to CTP to supply of gas to the Tanami  pipeline.

• Although I am unable to establish the price PWC paid for Blacktip gas it is common knowledge that ENI negotiated a pretty good price for the sale  their gas.

• CTP recently made a passing comment to the effect that  availability of gas, for this contract, was the problem rather than a completive price and the latest presentation seems to bear this out.

• I have posted many times on the bottlenecks imposed by Amadeus and Carpentaria pipelines and at the last webinar identified the Amadeus pipeline bottleneck in a question.

• Until the Mereenie Spur at feeding the Amadeus pipeline is increased in size CTP is limited to 22 TJ/day a minus Presold MAC gas 15 TJ/d firm at Palm Valley  minus  5 TJ/d Macquarie Pre-Sale (Supplied from Palm Valley/Mereenie).   Unless Palm Valley gas can fill the breach it could mean that the NGP1 capacity may  not fully utilised the Mereenie Spur upgrade is executed.

• The NGP looks something like this before the Mereenie Spur upgrade.

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• I have attempted to locate an official document that indicates new reference tariffs as a result of pipeline reform and was advised that this was not available. Would appreciated if anyone has more information.

I would prefer to wait for more information on drilling results before venturing to comment further.


Regards OGP