The Australain Reports Today that New gas projects face funding...

The Australain Reports Today that New gas projects face funding crush:

'Citigroup’s global head of energy strategy has warned several planned liquefied natural gas projects in Australia may not get investment approval as energy giants cutback on capital expenditure, The Australian Financial Review reports.

Seth Kleinman said pressure on major energy firms to reduce costs and focus on core assets, with the US a rare exception.

“We’re living in a world of restrained capex, whatever corporate speak each individual company throws out; even the Chinese are reining in capex now, which is really not what people were expecting,” Mr Kleinman told the AFR.

“Marginal projects are getting left behind across the across the entire globe as this sucking sound pulls capex back into the United States.”

The flow-on effect has already been seen in Australia with the delay of Shell’s Arrow LNG project in Queensland.'

My thoughts are that the above capex pull-back further supports MEO's low cost Tassie Shoal option to cost effectively monetize Evans Shoal stranded gas.