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  1. locshare11

    800 Posts.
    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.

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