LNG white elephants worthless

Another writedown of the value of Australia’s worthless LNG export refrigerators today:

More writedowns to come with those long-range forecasts still too high for oil and, as we go forward, crashed spot prices will overtake Brent benchmarks in Asia as well.

By my calculations, that’s now roughly $4bn in writedowns for a $6bn investment, in just five years. The fridges are worthless.

Yet the entire east coast economy is bailing out this apocalyptic capital misallocation as the firms use their worthless fridges to artificially tighten local gas supply and gouge 90% of Australian households and business.

We are so far past unbelievable that at this point that we can only call it organised crime.

David Llewellyn-Smith
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Comments

  1. yet Senator Rex Patrick is so busy talking about toy submarines that he has forgotten about this great national treason ????

    • Google how LNG – liquified nat gas is produced. To make it a liquid it involves cooling systems.

    • its like building a 20 billion dollar fridge for your house but all you have to put into it is a small and decreasing supply of chook eggs from your backyard coup cos you’re on a quarter acre, and all your neighbours have 300sqm plots and no coups… all the while everyone in your street cannot get enough eggs to feed their starving family… I think that’s what he meant … #CurtisIslandLNG

  2. To top it off, Santos claimed JobKeeper for their employees due to the drop in oil price earlier in the year.

  3. An admission of incompetence in capital and risk management by Santos. Surely shareholders can demand remedy through the courts against prior directors, resource assessment consultants (applying erroneous confidence intervals to reserves and extraction rates, based solely on US experience in different geology) and misreprentations by QLD govt.

  4. bolstroodMEMBER

    “We are so far past unbelievable that at this point that we can only call it organised crime.”
    a very good call David, for that is exactly what it is.
    If the good folk of the Liverpool Plains will stand as steadfast as the people of the Northern Rivers did at the Bentley Blockade they can force these criminals to back off.

    • If they don’t suceed in pushing Santos back in NW NSW, then there is no democracy and no Australia.

      I fear though that the current process is about apparent democracy

      The community gets the opportunity to be heard and then is ignored

      The great buggering of the Artesian basin begins here

      • bolstroodMEMBER

        I doubt the farming communities that rely on the Artesean water will stand by and let this happen, no matter what the government says or does.