The Valor Blog.
Investment News and Views, Direct from Our Team.

LNG boom???

With Russia looking to potentially divert large amounts of gas to Asia rather than Europe, Australia’s LNG boom may be less exciting than many are forecasting.

Once again, we are happy to avoid this space as our high cost producers with costs of up to $12 per million British thermal units come under pressure from countries such as Russia, the US and Qatar who all have costs of below $6 down to the low single digits.

If you are ever going to play the commodities space, stick to the lowest cost producers. Australia has the lowest cost producers for iron ore, but definitely not for gas.