One area of the gas story that I am interested in is the potential for Northern Territory gas to be hooked up to the east coast gas market. The Northern Gas Pipeline connecting Tenant Creek to Mount Isa was opened at the start of the year. There is potential that Jemena, the company that constructed the pipeline, may increase the capacity of the pipeline substantially and even expand it to the Wallumbilla gas hub.
If that were to occur, there would be a race on to explore and bring into production huge tracts of land in the McArthur and Beetaloo Basins. There aren’t many small ASX-listed companies with exposure to that area since most of the Beetaloo Basin is now in the hands of the majors. But there are a few that I think could benefit if Jemena goes ahead with a planned expansion of the pipeline. Watch the video to find out who they are.
There are also quite a few little companies on the ASX with plenty of gas, but no pipeline close by to get their gas to market. Their value would of course skyrocket if that very large issue was addressed. And as the gas shortage intensifies, there will be added pressure to connect areas that are currently stranded. I give you one such stock with stranded gas that would benefit if the Northern Gas Pipeline was expanded to Wallumbilla, thus opening up the Galilee Basin.
I also show you a stock that is getting closer to production in late 2019. They are close to infrastructure without too many hurdles to jump over before becoming a producer.
There are a bunch of other stocks that are on my radar as a result of the coming east coast gas shortage, so I will continue to focus on that exciting opportunity in future updates.
Editor, Alpha Wave Trader