MEO Australia to realise value from Tassie Shoal LNG project

MEO Australia Limited has announced an initiative to realise value from its Tassie Shoal Methanol and LNG projects, proposed for offshore Northern Australia.

The decision to pursue this initiative follows numerous discussions with parties interested in obtaining equity in these projects. UBS has been appointed as advisor to MEO in assisting with conducting a formal process to carry out the initiative.

The Tassie Shoal projects are located within the North West Australian hydrocarbon precinct, approximately 275 km from Darwin.

Methanol projects

The methanol projects offer the opportunity to develop two 1.75 million tpa methanol plants, with the potential to accept gas with a CO₂ content of up to 30%.

LNG facility

The projects also provide the opportunity to develop a 3 million tpa LNG facility, which may provide material cost savings relative to other LNG regional development options such as LNG processing at Darwin, or floating LNG technology.

Environmental approvals have been secured in accordance with the EPBC Act and remain current until 2052. The LNG project environmental approvals include provision for a review process every fiver years, with the next review due in 2017.

Image courtesy of MEO Australia.

Comments

Commenting on the Tassie Shoal value realization initiative, Jürgen Hendrich, MEO’s Managing Director, said: “Over the years, our technical and commercial teams have continued to de-risk the Tassie Shoal projects to enhance their realisable value.

“The company has established relationships with key technology providers, secured environmental approvals and obtained Major Project Facilitation status from the government. Non-binding Letters of Intent were signed with three parties in 2013 for all methanol off-take from both methanol plants.

“Having progressed the project to this point and taking account of the interest expressed in the assets along with recent transactional evidence in the region, we feel now is the time to offer equity in the Tassie Shoal Projects to other participants who can further enhance the value of the projects. With its prime location and strong underlying demand for the Tassie Shoal production stream, we believe the projects provide significant early-mover advantage to an acquirer."

Oil discovery in New Zealand

MEO’s other assets comprise seven Australian permits and a producing oil discovery onshore New Zealand.

MEO expects to update the market in relation to its Tassie Shoal Projects value realisation programme later in the year.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/07082014/meo-australia-proposes-lng-and-methanol-projects-1163/