Australian LNG Commodities Featured Article

Australia’s LNG future is going down the gurgler

Monday, 21 September 2015

The LNG wipe out is reaching epic proportions. Today’s falling star is ORG, down another 5% and which has now unwound its entire LNG ramp up:

And no, I do not think ORG is at the bottom. It is now carrying an enormous and largely worthless asset on its balance sheet securing some $12 billion in debt. It won’t be at the bottom until that little conundrum is resolved.

Yesterday’s whipping boy, STO, is down 0.5% but who cares, really. It either sells its PNGLNG stake and becomes worthless or keeps it and goes down the debt plughole as its nearly worthless QLD asset secures $9 billion in debt:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.