QGC has run very hard of late, and it was probably time for a breather. Couple this with the fact that BG hasn't been able to successfully takeover Origin, and this is probably why we're seeing a bit of a retreat at the moment.
Furthermore, the CSM sector is running on hype at the moment with international interest, the industry is being significantly re-rated. Unfortunately a lot of this hype is based on blue sky, unproven 3P reserves.
IMHO increased competition now for BG/QGC with STO/Petronas and Shell/Arrow all jostling for positions at Gladstone is not necessarily a plus for QGC either.
There will be further consolidation in the industry in time, I'd like to see QGC have a crack at either MEL or MPO.
FID is scheduled for 2013, from when QGC will start shipping to Europe, UK with help from BG. You'd be silly to completely sell out before then.
QGC will be very toppy at current levels, I have held since original SPP of 25c, but wouldn't consider topping up unless price was under $5.50. Long term, ie 5+ years, QGC is an excellent proposition, as a leading CSM pure play in a rapidly emerging and developing industry.
QGC
queensland gas company limited
