I find it ironic that the CSG lobby tried to kill UCG off in QLD and by doing that they have forced the UCG companies to go off shore to places like China. The CSG companies have tenements that contain gas here in Australia, but the UCG companies hold technology. Technology that can exploit the vast quantities of coal that exist in places like China. China, has the world’s second largest coal reserves in the world. Why bother with buying gas from a company in Australia, or anywhere for that matter, when it needs to be piped to an LNG facility at a port like Gladstone before being converted to LNG and shipped thousands of kms before your unload at another facility before you can use it? Why not use UCG that recovers up to 95% of the energy in the coal seam (as opposed to 5% for CSG) right in your own backyard?
Well done to Anna Bligh and the CSG lobby, you may have cut your nose off to spite your face.
LNC Price at posting:
$1.42 Sentiment: ST Buy Disclosure: Held
