Quote:
Originally Posted by accord1999
Much of that cost is also due to the various Australian state level governments restricting exploration and development of new NG sources and prohibiting fracking.
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Yes. The shortage on supply carried the LNG price to the market. The LNG here is 95% contracted on oil linked contracts. Those prices are still achieved despite what else is going on. The public and industry are feeling the hurt of short supply.
The WCS differential is cool to chat about in the short term, but unstranding Canadian NG is the future. A world NG price of $5.50 - $12/GJ is achievable when the plants FID.