GREY:MAAFF - Post by User
Post by
Brainwave1on Oct 23, 2010 9:06pm
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Post# 17603798
Cheap gas in Mengo
Cheap gas in MengoMAG's project is pretty much insulated from fluctuating gas prices as there is next to no domestic market for gas in Congo and no export outlet (LNG) either. There are huge stranded gas reserves in-country and the extent to which they are used at all is dependent on finding a domestic industrial user,for which a fixed price is negotiated. MAG has gone that route for its thermal gas project with Agip and presumably they will easily find a seller at a good price for any gas they need for solution mining.