Wednesday 14 November 2012

Australian LNG Projects Get Pricey

'Boom crash opera!' In keeping with this week's musical theme, that's how we'd describe yesterday's drama in the Australian share market. The ASX/200 fell over one and a half per cent by the close. It was an equal opportunity blood-letting, with the banks and the miners being hit.

But we'll handball the analysis of the Aussie market to our resident technician, Slipstream Trader Murray Dawes. Murray writes a regular Wednesday column over at Money Morning. We thought you might find his latest analysis useful. You can find his stock market analysis here.

In the meantime, when is the Australian dollar going to stop its brutal acts of vandalism on the Australian economy? Cost blowouts on Australian Liquefied Natural Gas (LNG) projects now exceed $35 billion since May of last year, according to today's Australian Financial Review. This comes hot on the heels of Chevron staring down the barrel of $20 billion in extra costs at its Gorgon LNG project in Western Australia and ExxonMobil raising its estimated costs and its PNG LNG project by US$3.3 billion.

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