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Hi Denpal,

Appreciate your input on the current natural gas situation in the US.

Here's an artical from the Alan Kohler Eureka Report that addresses the LNG situation in Australia.

Asia's new gas problem
By Ivor Ries
March 12, 2010

PORTFOLIO POINT: A looming shortage will hasten the development of CSG projects.

If you wind the clocks back six or eight weeks youd find Australian broking houses trotting out story after story about the impending oversupply of gas (see Gas overload, Gas stocks may lose steam). In their infinite wisdom they were all saying the world is going to be awash with the stuff and companies like Arrow will never get anyone to buy it.

Which brings us to an announcement made late on Wednesday night by Indonesia, the worlds third-largest exporter of LNG, which said it would cease exports from its Bontang and Arun plants by 2014.

Why? Because they are running out of gas!

Malaysia is running out of gas. Thailand is running out of gas. All the big suppliers are running out of gas. Its been reported that these two fields in Indonesia account for about 95% of the gas produced in Indonesia last year. This is going to cause a huge supply shock.

Last year Japan imported about 20% of its gas from Indonesia and it already gets about 50% from the Middle East, which is probably about the maximum they are comfortable with. So with one stroke of the pen, the Indonesian government has withdrawn the equivalent of about five LNG trains from the market, just like that.

This is going to accelerate the speed at which these coal seam gas projects take shape. The time frames for eventual delivery of the gas from these developments ranges between five and 10 years but if you flew to Tokyo today and said, I can deliver you four million tonnes of LNG in 2014, the pens would come out and buyers would sign pronto.

... The artical goes on to discuss LNG projects in Australia.

So what do you do? ..research, read the charts, read Yogi, decide, drink wine, be happy.

Cheers

Kaj