australian gas contracts falling over

Interesting article in the Australian today on gas contracts, which looks good for NEN. The article is talking up the USA and East Africa, NEN is ideally positioned in Asia where costs are far below the costs of Australian gas and that of the USA and I suspect comparable to East Africa. Looks as though apart from Vietnam there is a ready market available for the sale of gas to other countries within the pacific basin.
"AUSTRALIA'S high-cost liquefied natural gas projects - the investment backbone of the nation's economy - are under increasing pressure from Asian buyers demanding steeper discounts amid evidence at least $60 billion worth of gas supply deals have fallen over.

As burgeoning supply centres emerge in the US and east Africa, operators of Australia's $200bn project pipeline of LNG plants on the northwest coast of Western Australia and in Gladstone in Queensland will find keener pricing on supply deals, industry leaders warn.

Already two big gas export deals with South Korea, worth $60bn, have been shelved as LNG buyers seek out deals elsewhere.

Chevron, the builder of the $53bn Gorgon LNG plant on Western Australia's Barrow Island, said a 2009 agreement to sell $30bn of gas from the project to Korea Gas across 20 years did not get approval from the South Korean government and that the country would not be taking the gas.

Local Chevron managing director Roy Krzywosinski revealed for the first time yesterday the deal fell over in late 2011. At the same time, another Chevron deal with Kogas, a $29bn supply deal from its West Australian Wheatstone project, was also axed."