Oil link price basically is a complex ratio between the POO & POG (in the US this translates to US$100/bbl & Henry Hub $5/GJ to give u a 20:1 ratio).
For our WA-LNG landing in Japan the oil link is apprx $14.
From what I've read for 2015-2017 for GLNG, this could b apprx $15/GJ & then plateau off at $8-9, as the other projects in QLD start catch up.
Each plant/LNG train builder is now locking in a partner/buyer (BG has CNOOC on board, STO has a couple, Origin has a threesome going with Conoco & Sinopec).
Sounds like Santos has the need for piping more gas to its GLNG & WCL had uncontracted gas sitting at Meridian, so its a win:win for both parties (not to mention the proximity of WCL's project).
What matters more for WCL is that this is a 'Binding' agreement.
So I wonder if Landbridge will now fork out a premium to its 36c/sh offer !! Surely they should b capable of doing modelling an NPV analysis at the new prices for a 20 yr period.
WCL Price at posting:
28.0¢ Sentiment: None Disclosure: Not Held
