Monday, June 4

Insight: Australia's coal bed LNG export expansion plans falter

PERTH (Reuters) - Confidence in Australia's coal seam gas industry, one of the nation's brightest economic prospects, has begun to flicker.

For the first time since energy firms kicked off $50 billion of projects to drill for gas in the region's rich coal deposits less than two years ago, there is a consensus emerging among industry executives and experts that plans are well off track.

Patchy drilling results, rising costs and a world-wide glut of gas threaten to jeopardize what could amount to more than $60 billion of additional investment in liquefied natural gas (LNG) plants, based on current project costs, and leave an industry that would be just half the size its architects once envisaged.


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The Chicago Tribune

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