Saturday, January 17, 2009

Will Woodside shelve Prices Point?

Interesting that Woodside have blamed souring market conditions for shelving two natural gas projects recently. Natural gas futures in New York have dropped 57% in the past 6 months and crude oil prices have plunged 74%. Woodside Natural Gas - a US unit of Perth based Woodside Petroleum had suspended its proposed natural gas import project for the LA region. "We must acknowledge the impact of the current market ...... we are withdrawing our application for the time being," Woodside Natural Gas president said. Meanwhile, BG group, Britain's third largest natural gas producer has cancelled plans to build a $750 million power plant in Australia. Market analysts are predicting a poor year for Woodside during 2009 due to difficulty in raising capital and the low price of fossil fuels.
Does this mean anything for the development of Prices Point - we can only wait and see.

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