MEO Australia Limited provides the following update in relation to the continuing project development activities related to the Tassie Shoal suite of projects.
Following receipt of Expressions of Interest from major international industry participants for 8.3 million tonnes per annum of methanol offtake from the first Tassie Shoal Methanol Plant (TSMP1), MEO has been actively engaged in negotiations to shortlist its preferred long term buyers, including maturing the commercial basis for long term sales of methanol from TSMP1. It is envisaged that the long term sales contracts will provide the revenue certainty required to support external financing requirements for the project’s development.
In addition, a number of parties have also sought to explore broader synergistic strategic partnerships across the midstream and upstream value chain. Exploratory discussions to consider such long term partnerships are continuing in parallel.
On the feed-gas supply front, MEO and its potential partners are considering the implications of suitable gas being available from MEO equity sources, including the discovered Heron and Blackwood gas discoveries currently being appraised as well as potential gas from equity prospects, such as the Breakwater prospect in WA-454-P (MEO 100%). The unprecedented planned appraisal of regional discovered resources is also anticipated to provide the opportunity to consider third party gas supply opportunities.
In parallel with the maturing of the evaluation activities, MEO is commissioning major updates of the third party engineering studies that underpin the technical design basis and financial cost estimates for both the Tassie Shoal Methanol and LNG developments.
MEO’s Executive Manager Business Development Robert Zammit commented:
“The value of the Tassie Shoal development concept is crystallising for those parties that have considered the alternative development concepts for the surrounding resources. The opportunity exists to commercialise regional stranded resources in a profitable way for all stakeholders. The complex series of negotiations currently underway are a pre-requisite to capturing the highest value opportunity for shareholders in developing the Tassie Shoal precinct.”
[mappress] Press Release, September 10, 2012; Image: MEO Australia