If it is the same as iron ore then you want to be the lowest cost producer. Now which company has the lowest cost curves in LNG and transport to it's markets on easy close routes? I haven't see recent broker comparison of the cost curves or LNG worldwide along with approx transport costs to major markets and hub nor summary of country's political stability. Just where on the cost curve does supply start to fail especialy with some of the newer supplies using very short term finance a slight change in rates upwards because of risk or markets and they quickly go out the back door. Russian gas etc there will always be a concern when pipes cross borders and transit countries so there is a reason to also have LNG infrastructure if you have ocean access.
There may be some merger activity to pick up distressed gas assets so i hope OSH retains some cash .
Taxing like carbon taxing may keep gas and oil closer together in price due to emissions but that is no guarantee depending on coal . .
OSH Price at posting:
$6.95 Sentiment: None Disclosure: Held
