I recently sat in a presentation about the shale gas and LNG...

I recently sat in a presentation about the shale gas and LNG industry. One of the facts is that in the US, they can drill wells and build LNG plants at much cheaper prices than we do in Australia. Especially, the LNG plant is the biggest cost item and they can do it for half of the price in the US (approx). The take away message is unless LNG price is high and stable enough, there is very unlikely to see more large scale LNG facilities in Australia. Those built is lucky, painful but done.

I believe Harbour comes to STO because of the already built facilities and of course the reserves. By buying STO, they effectively build LNG plants at discounted prices to what we actually spent.

I am happy either way. Higher price takeover or backing away, let STO go on with their business. We are having a healthy wealthy STO right now.