I put a small amount into STAR because north sea gas is in decline & the Zebrugge to Bacton import pipeline may not be able to cope with peak demand.

So I started looking around for companies in the gas storeage business & I found STAR.

I bought them expecting them to gradually rise but they haven't moved so far.

The Humbly Grove storeage project is on budget and on schedule to start commercial operations in October 2005

The next storeage project is in Lincolnshire.

They are also pumping oil from small UK wells so the current OIL price is great for profits.

I don't buy many AIM shares but this one is an exception.

telegraph Link

BP abandons small firms to concentrate on bigger picture

By Tessa Thorniley, Telegraph (Filed: 11/10/2004)

BP has decided to pull out of supplying small British manufacturers with industrial gas as thousands of businesses are being hit with a near-doubling of energy bills.

Amid alarming volatility in the gas markets, the oil and gas major is withdrawing supplies for some firms to focus on wholesale markets and large industrial customers. A BP spokesman said: "We will not be renewing contracts for some industrial and commercial customers on our metered system as the agreements expire over the next six to 12 months."


The news will be a blow to thousands of companies that have delayed signing contracts with energy suppliers this year amid soaring gas and electricity prices. "The fewer players you have in the market, the more product margins are likely to rise," Mike Coulten of the Energy Information Centre said.

Gas prices have soared over the past 18 months as North Sea reserves have declined and Britain relies increasingly on gas flowing from the Continent. The prospect of a 50pc to 60pc increase in energy prices has led to thousands of businesses waiting to sign contracts in the hope that the surge would be short-lived.

Roger Handley, who runs Handley Printers, a jigsaw manufacturing and printing company in Stockport, said he is facing "a financial crisis" after waiting since August to renegotiate a contract with German utility E.on, owner of Powergen.

He said: "We heat the factory with gas as it needs to be temperature controlled for the printing work. Over the past few months I have been offered three gas contracts showing price increases of up to 58pc. After accepting each offer it was withdrawn shortly after because prices were moving so quickly. I've now accepted a 90pc increase, taking my bill to 44,000 compared with 23,000 last year.

"There are only two major companies that manufacture jigsaws in the UK and at this rate there will only be one," Mr Handley said.

Far from falling back, wholesale gas prices are at "absolutely crazy levels", analysts at John Hall Associates warn. The energy consultancy said the outlook is bleak with little relief from volatility and high prices expected over the next two years.

Ratings agency Fitch echoed the comments in a recent report, predicting greater price volatility in coming years and "limited price relief until 2007 to 2008" when new liquefied natural gas terminals and pipeline capacity comes online. Mr Handley said: "I've contacted brokers but all the suppliers are in the same boat. No one could offer me a better deal."

Ofgem and the European Commission are currently investigating whether trading through the sub-sea pipeline connecting Bacton in Norfolk to Zeebrugge in Belgium has been manipulated, with imports of cheaper Continental gas being withheld to force UK gas prices higher.

The watchdog wants to know why European companies opted to store gas rather than take advantage of higher prices to sell on to the European market. Britain's liberalised competitive trading arrangements are in stark contrast to the rigid European markets dominated by former monopolies. This is an increasing source of friction.

Mr Coulten said: "It's disgraceful. There's plenty of gas in Europe, it's a case of the EU's former nationalised energy groups over-contracting to protect themselves from competition. It also looks as though British gas producers have been sitting on their hands."

High risk during construction phase, but like the strategy and have locked a few away at 182p.

There appears to be something happening!!!!!!!!!!

Apple -Delayed reaction to your post 21st Oct - perhaps to do with Artemis stake revealed yesterday?

Nice rise.

partridge
I saw even more activity a few days ago & now we know who some of it was.

Yep, I'm in here. One look at the chart and I couldn't say no!

More buying today.

I certainly rate the Artemis Smaller caps fund - these guys seem to know a good thing when they see it. LNG is talking over from oil - the next big thing. With patience this could be huge.

rgrds
gk

STAR should start moving soon as what it does sinks in with investors. The buzz surrounding imports of LNG is enormous and this will eventually spill over into STAR - see the thread on Hamworthy (HMY) ,makers of LNG handling equipment, for some interesting reading.

Hamworthy Thread Link

I've just visited the STAR website and note that Artemis Investment Managers have a material holding, but I'm not sure if there is a suggestion that Artemis UK Smaller Companies have a stake in this company or not. Please could somebody add clarity as to which Artemis funds hold Star? Thanks

there has been a rush of announcements (Exxon, Shell and Total) in the last few days about big LNG contracts to bring the gas into the UK and Continent. Soon somebody will wake up to the fact the the next few years is going to bring a massive demand for storage facilities. This can only play into the hands of STAR.

Why was there such a static share price after the IPO last year.This is a difficult one,how to calculate where the sp should go to.Help please.

ethel

don't really know - the IPO was pretty low key and there has been limited newsflow. I also think that STAR is being looked at as a small oil company and its potential for storage is being overlooked. I don't try and calculate anything about a company as young as this. I look at what they have got to offer and is it (or will it be) needed. IMOH the answer has got to be yes. If you invest in STAR at the moment its got to be pretty much a gut feeling. As always DYOR .

I feel sure that this one will happen but not yet. If you can afford to have your money dormant for several months, then go for it. When all the LNG comes on line it's got to be stored somewhere. But the word is WHEN. But you know the old saying "The early bird" ect. I'll be watching and will invest but I can get a return on my money now without having to wait for things to come on line.

LOL

MS

Been some chunky deals this afternoon, which has seen the share price move up a couple of notches........perhaps something is stirring in the City.

Check out the HMY thread. Lots of info regarding massive world wide investments in LNG. Storage, ships etc.

MS

Thanks for your advice.I shall probably wait and see.Ethel

LNG is one of the fastest-growing segments of the global energy business, as markets such as the US and Britain start to run out of domestic natural gas supplies.

Super-cooling the gas into a liquid allows it to be shipped on tankers, like oil, eliminating the need to build expensive pipelines across unstable parts of the world.

James Boxell The FT March 1 2005

.......................................

It looks like this share will start to move soon.

It ticked up a little bit today.

nearly two million shares trades including two big sells. clearing a stock overhang maybe? be interesting to see the volume next week