Australian LNG Writedowns Loom on Oil Slump After BG Posts Loss
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BG Group Plc’s move to write down the value of its Australian assets after a slide in oil prices signals further impairments in the country’s natural gas export industry.
“There will be more impairments to come,” Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co., said today by phone. “It’s a reflection of the over-exuberance that we’ve seen over the last few years in Australia” with liquefied natural gas projects assuming higher crude prices would remain, he said.