we have to remember that the economics of Conventional Gas with its associated Condensate is Different from CSG with Nil condensate and less energy per unit
Head to head LNG has a big price competitive advantage because of its condensate byproduct credits
STO likes CSG because it is like mining with low exploration risk compared to conventional oil/gas and enables addition to 2P reserves very cheaply
The CSG industry is greenfields so needs to prove up a project to FID to gain credibility
Consolidation of the Gladstone projects would be a good indicator that some may actually happen instead of being desk exercises. The first consolidation announcement would be a huge boost to the sector.
Amother big booster would be the climate moonbats at copenhagen giving Gas a Tick as a preferred interim lower carbon fuel
And why cant NSW follow QLD's lead and mandate 15% or so of power be generated using gas. If ESG and others prove up more resources that will pressure the government to exploit the resource.
Gas market expansion - will make room for CSG
ESG Price at posting:
77.5¢ Sentiment: None Disclosure: Held
