good news week, page-5

Yes Fish,I think I called cooper was going to be the one,some time back.


THE effects of surging Queensland domestic gas prices driven by $60 billion of planned LNG plants have hit southern states, with Exxon Mobil and BHP Billiton pushing to link Bass Strait gas contracts to international oil prices.

Industry sources said the pair, which jointly market gas they produce from their Gippsland Basin joint venture, had been aggressively chasing higher prices on new and rolling-over gas contracts in Victoria.

Domestic gas contracts in Queensland beyond 2015, when the big coal-seam gas export projects start demanding gas, are already being set at double current prices and linked to oil prices, just as LNG prices are.

The price jump was expected to take some time to run down to Victoria but Exxon and BHP are said to be pushing hard to charge Victorian gas buyers, which are mainly retailers, the equivalent price to Queensland, minus transport costs.

One gas buyer said that in current talks, the Gippsland venture was trying to quickly push prices higher and link them to international oil prices.

East coast gas prices have sat at between $3 and $4 a gigajoule for years but in a recent sales deal to the Santos-led Gladstone LNG project, oil-linked prices were set at $8 to $10.


http://www.theaustralian.com.au/business/mining-energy/exxon-bhp-pushing-to-link-bass-strait-gas-contracts-to-overseas-oil-prices/story-e6frg9df-1226361629392

Raider