I still don't like only 4 core buyers but 20 year contracts and they are with largest power producers in the countries and close by. Would be great to put some gas into Asia closer to Australia so the Aussie LNG have higher transport costs and time going forward.
A mild oversupply coming if all projects come on line at nameplate but we regularly see a slower ramp up and delays and might even see project finance failure on a couple in current environment.
World economy picking up and renerwables still not industrial or base load reliable so gas looks good and oil a bonus.
Stable politics for a few years - well maybe .
These guys are hitting targets, reasonably conservative so no real excitement so not sure what will drive price unless efficiencies come in quicker or at lower cost or expansion comes in cheaper . Crisis in gas supply with another failure or world supply declining with political unrest would seem to be only price drivers unless demand increases with more gas generation or economy with industrial use.
High capital costs will stop new projects at low margins unless done by countries for strategic reasons
As usual the market doesn't get excited about meeting targets and doing what they are paid to do and stable business means no premium paid yet on any short term downside they get hammered. Such is life.
Anyone have data on projected world gas demand or new power generation to come on line? Low gas prices may allow more gas generation to be built. ?
OSH Price at posting:
$7.14 Sentiment: None Disclosure: Held
