reason for weakness?, page-2

I believe that the weakness is ahead of a decision on the pipeline. Both Exxon and the PNG politicians have said that a go/no-go decsion is required by November - that's now. So buying pressure has eased off - there will be a sell-off if the pipeline is canned or significantly delayed. IMHO this is not very justified and will be short-term - because they will be commercialising the gas in other ways such as a methanol plant and/or a LNG export to Asia (China and Japan).

The politicians have sounded positive and said recently that Western Mining and Qld Aluminium are in advanced negotiations to buy gas - so its possible but not too likely that it will proceed to FEED in the near-term. But still the market is being cautious about getting caught in a sell-off if its no-go.

H