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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Wyätt Gwyön who wrote (12727)4/28/2004 1:30:03 AM
From: Elroy Jetson  Read Replies (1) of 110194
 
This is why Australia, which is self-sufficient in gas and an oil exporter, is planning to build an undersea gas pipeline from PNG (Papua New Guinea). They need to increase their supply of natural gas in order to expand their export industries of plastics, fertilizer, and products which use a gas feedstock.

I'm fairly certain this represents the wave of the future. Products requiring gas feedstock will be produced close to the gas supply. It's dramatically less expensive to ship products like plastic pellets than it is to ship LNG (Liquefied Natural Gas) in insulated ships.

Mexico has been eager to place a LNG terminal in Baja California to supply the United States. The chances of placing an LNG terminal in a populated area is essentially zero. In spite of the many precautions, it is far too dangerous. One major accident can potentially flatten 20 or 30 square miles.

It's my understanding that many companies, such as Dow and DuPont, who produce petroleum based products already see the writing on the wall and are involved in joint-ventures in petroleum exporting nations.
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