ICN 0.00% 2.0¢ icon energy limited


  1. 800 Posts.
    lightbulb Created with Sketch. 1
    Costs in Asia, the region that buys the most supercooled fuel, will this year average below $10 for the first time in four years as new projects in Australia and the U.S. boost supply through 2016, Bloomberg New Energy Finance said.
    “Low oil price is good for the LNG business because it drives out the unsuccessful projects,” said Bolton.
    We're facing 2 forces US (supply) and China CN (demand)
    Us inventories  are overloaded. They want to export but structural change requires time and money as it was an importer (unlike Australia  has been an Lng exporter). Much more infrastructure  is needed as their roads are urgently needed to maintain  and that's 1st priority  for economy  to expand (unlike Cn massive 7 trillion infrastructure  assets).  And Keystone for example  has been  delayed over 6 years.
    Us market is aimed at Euro and Uk, not CN. CN don't  even dream Us to have a FreeTrade with them simply  they don't  like each other. Even India was begging  Obama  for an exclusion to import Us gas but it's all up to the congress in the comming Trans Pacific P. Japan hasn't  got Fta but Its Impex Itchy  is drilling.
    The fall of Russian  oil &gas makes Euro rethink about Us gas market because of the low prices. Although Euro don't  want it. They don't  want to pay a higher price  compare to asia prices and they don't  want to hurt the term of trade with Russia. That's  why Obama gave a thumb up for decline  in OG prices.
    Us gas market is for companies  established  in Us only. Recently BHP said that they will export condensate  and WPL bought Chernies for its Lng from different  sources.
    Let's  compare about the spot prices  in Europe  and Spot prices  in Singapore  together with the value of USD and AUD to see which is cheaper.
    China is the new lng market after Japan. CN shale is complicated  according  to Halliburton. Its population and its geology even though it holds 2nd largest  reserves  in the world. They'll face a lots of communities  rejection like AGL Australia  have been forced to shut their shale wells. and Victoria  kept on banning the fracking.
    It might be the reason  why president  Mr Li traveled to Russia, UK for its lng demand and Iran for its oil. They're looking for cheap sources. Recently an article was brought to this blog said low lng price cargoes can compete  with pipelines especially  with Russian  sea pipelines  and even Turkmenistan  pipelines (50% CN imports  ) I supposed.
    Asx200  is attracting  fund managers  because  most of commodity  companies  look like bottomed  out. Our rate made Aud cheaper  and that's  good for exporters. And if CN recovers from their immature  financial system. Australia  is a safe Habour.
GET SUPPORT arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.