The market at the moment is being swayed by a negative sentiment...

The market at the moment is being swayed by a negative sentiment from some energy journalists that should know better. Some are even claiming there is a gas glut.

If they took the time to read the latest British Gas quarterly they would observe that British Gas have 3 major projects on their international portfolio.


1. Their big offshore oil finds in shallow water Brazil.
2. Their investment in shale gas in the USA.
3. Their investment in Australian Coal Seam Gas.

Of the above 3 they rate the 3rd, their investment in CSG/LNG ex Gladstone, as their "Jewel in the Crown".

In the Chairman's initial address he commented on how important it was to secure future gas supplies from a polictically stable country.

Yesterday I read that BG's troubles in Khasagsan ( spelling? ) was fraught with tax and royalty increases. On top of that is political risk.

British Gas know the gas market backwards. It is time some aussie commentators read that quarterly.

ps. BG's FID only awaits environmental approvals. They have given approval for the contractors to get started.They claim Gladstone is viable even at $US30/bbl ( oil ).

Arrow have a remarkable guy in Nick Davies at the helm and he doesn't make claims lightly. He has openly stated that AOE will quadruple its market cap within 4 years. I believe him.