re: mou with china sino gas

Hi guys, this is my interpretation of this deal with China... forgive me If this doesn't make sense to you, but I'm basing my investment decision by these so any comments are very welcomed...

China's LNG infrastructure is expanding very fast... Currently there are three LNG terminals up and running at Shenzhen (Guangdong), Xiuyu (Fujian) and Shanghai all owned by China National Offshore Oil Corporation (CNOOC) the same guys who executed the North West Shelf Project with Woodside Petroleum in 2001....

Six more LNG terminals expected to be up and running by 2011/12/13, two by PetroChina, one by Sinopec and one by SinoGas.

When you research further you will notice that CNOOC has a market cap of
$A 87BN, PetroChina $A 13BN, Sinopec $A15BN and Sinogas only $100M?

Both ICN and Sinogas are similar in size (around $100M) and both are very ambitious to become major players in the emerging LNG market...

I am optimistic that this deal can happen....all you need is government funding of which China is willing to to do.... and potential reserves of which ICN has..

SinoGas worth only A$100M has gained support from provincial leaders to build a receiving terminal worth A$727M, seven times its market capitalisation... This terminal will be up and running by end of 2012... and ICN has until 2014 to source the gas... why can't it happen?

Quoting directly from the Eureka Report where ICN was listed in an article titled 'how to spot the next ten bagger' by Frank Gomez:

"...Its easier for a $100 million company to become a $1 billion company than for a $10 billion company to become a $100 billion company. Thats just common sense; it also means that you have to be prepared to take on risk"

"In the main, the ten bagger is a smaller company with huge potential. Over time, this is realised and the stock provides patient and loyal investors with handsome returns. The traps here for investors are numerous and deep."

This is what I think - please do your own research too.