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To: zebra4o1 who wrote (184207)	6/2/2014 4:11:26 PM
From: Dennis Roth	2 Recommendations Recommended By evestor isopatch Respond to of 206176

I don't get this analysis. Is this Russian gas new supply? Isn't it just gas that was previously being piped to Europe? Won't the Europeans now have to buy from somebody else? It's new supply. The Chinese will finance the development of the Chayanda and Kovykta fields in Eastern Siberia and the pipeline by prepaying for gas. The Russians will pay them back in gas. Europe is supplied by existing Western Siberian fields. It will also make Russia's “Power of Siberia” gas pipeline and Vladivostok LNG (“VLNG”) economic, as this Citi note ir.citi.com explains. That's more LNG supply in the Pacific. I see it more as a threat to B.C.'s LNG dreams as they are going to be late to the Pacific LNG party. Australia's LNG projects are already underway and coming on line. The Chinese will never allow themselves to become as dependent on Russian gas as the Europeans have. They are too clever for that. They are lining up supplies from all over. Even if the Russians were suppling the Chinese from Western Siberia, it wouldn't cut into European supplies. Russian gas production is not resource constrained, but market constrained. It's contained by how much the world is willing to buy from them.

To: zebra4o1 who wrote (184207)	6/2/2014 5:24:25 PM
From: Dennis Roth	1 Recommendation Recommended By evestor Read Replies (1) \| Respond to of 206176

Aust LNG forecasts are ‘crazy': report June 03, 2014 5:30AM theaustralian.com.au Fereidun Fesharaki, a former energy adviser to Iran with strong links to liquefied natural gas (LNG) buyers, believes expectations for gas prices based on Asian demand are too high, potentially forcing new local projects to the sideline, according to The Australian Financial Review. Dr Fesharaki said that projects already in the pipeline with locked in sales contracts were not at risk, but new projects will need to lower their costs or will be wise to “wait until the market changes”. “The customer that everybody assumes is there based on these crazy demand forecasts is just not there,” he told the AFR. The report suggested Dr Fesharaki’s assertion that new projects will need to supply LNG at $US13 per thousand cubic feet of gas could put great pressure on Woodside Petroleum’s planned Browse floating LNG project as well as Santos’ Bonaparte joint venture in the Timor Sea and an expansion of the mammoth Gorgon development in WA.