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With regards to LNG.

Chile is desperate for more LNG and is actively building more and more terminals as it has had supply problems with Argentina for a long time.

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........Mejillones LNG Terminal, Chile

Key Data

Natural gas is fast becoming the preferred fuel of the future. With a supposed cleaner reputation than coal or oil as fuel for domestic use and power generation, countries around the world are fast constructing LNG regasification terminals so that they have the facilities to provide for their energy needs over the next 25 to 50 years.

Chile is no exception and with its previous reliance on Argentinean gas is now equipping itself to receive gas imports from further afield. Chile has other LNG projects under construction such as Quintero Bay and now there is also a project in Mejillones, Antofagasta (northern Chile). Northern Chile is still under severe gas supply restrictions from Argentina. Mejillones is also the area chosen for a new super port that will be completed by 2030..........

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Here is a presentation of where Chile is today with gas/LNG.

http://www.gnlm.cl/documentos/GNLM_Platts_10th_Feb_2011.pdf


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Even a few days ago it was announced yet another LNG regasification plant would be built in Chile, and as you can see, they are buying gas from Europe and US to ship to Chile - now would an LNG plant on the Falklands be much more efficient than shipping LNG from Europe and the Middle East all the way to South America ??

http://www.bnamericas.com/story.xsql?id_sector=9&id_noticia=583687&Tx_idioma=I&source=


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Globally it was recently discussed that from 2016 there will be a big shortage in LNG worldwide, becoming a critical shortage from 2020 unless a lot more LNG projects get started and get into production.

If I were BOR now, and condensate levels are high at Darwin, I would start to discuss with the Falklands Government about adjusting the tax and royalty levels to make building an LNG plant onshore Falklands a very viable project. For the FIG its better to have something as opposed to nothing - and with only 3000 population and billions of dollars of potential oil and gas revenues coming in - I am sure they can be very generous. Unlike the UK where a massive welfare state hanging around the neck of the government, they must try to increase tax all the time to pay for freebies given out all the time.

Scotsman reporting 2 billion pound gas discovery, samples to be tested in Aberdeen.

http://www.scotsman.com/the-scotsman/international/significant-gas-find-discovered-near-falkland-islands-1-2251058

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6 ramping posts and the stock market not even opened....No Oil its overpriced at 400 mill.

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Re post 691 - 2 billion gas discovery. However, it will cost 2.1 billion to extract and get to market.

Even the gas find is not commercial here - red day ahead

you'll have pro in tears gib.,.

I don't think it is viable... sp still falling.

lol baler but i hope not - he does have some very good points also though - but the gas find is not commercially proven and to make it commercial the find needs to be massive at least 5 / 6 trillion cubic feet due to location and that type of gas expensive to process - that is well known - i hope you did well here before the drop - i guess someone like cynic might be shorting here right now

hyleo - unlikely to be imo which is maybe why that was not mentioned in the rns - wonder how low this will drop / where the bottom will be

It's not commercial if it's on its own....this is condensate...if the drilling program goes well : it will not be on its own...there will be infrastructure...rigs everywhere....such early days yet...

this is worth remembering : Hoil was £4 plus based on an oil find then dropped almost immediately to £1.50 when their find was proved gas, additionally AUL also went from 86p to 18p when their oil turned to gas, that says it all imo gl

Was not condensate.....big, huge difference in price...

rf - good point and because early days only and other mitigating factors the chance of lower sp is imminent

Possible...but this might go back up to hover around 100p prior to next spud....

buy buy buy.,.

I suppose the Argentinians are rubbing their hands with glee, trying to pretend that they didn't really want that part of the Malvinas anyway!

I doubt it HC.....this drilling campaign is going to be superb....

baler 50p would be nice! i seriously hope no one burned here though as otherwise that 50p comment would not be welcomed i realise that

220p offer for Cove Energy,,,you see...even Shell loves gas......girlfriends don't but oil companies do.....