U.S. hog farmers are making money for the first time in a year after prices surged to a two-decade seasonal high and feed costs fell, spurring them to expand herds that will yield the most pork on record.
Korea Gas Corp. , the world’s biggest importer of liquefied natural gas, may need more Australian LNG after signing an initial accord to buy supplies from Chevron Corp.’s proposed Wheatstone project, Citigroup Inc. said.
Escalating costs to build liquefied natural gas plants on land in Australia, where energy workers earn the highest salaries in the world, are driving developers out to sea in search of billions of dollars in savings.
Woodside Petroleum Ltd. may delay the start of the A$13 billion ($12.7 billion) Pluto liquefied natural gas project in Western Australia until August 2011 and increase its cost estimate for the venture, Citigroup Inc. said.
U.S. hog producers are unlikely to increase the size of their herds because of the soaring cost of livestock feed, AgStar Financial Services Inc. said, signaling higher expenses for meat processors including Hormel Foods Corp. and pricier pork chops at the grocery store.
Meat prices are poised to extend a 14 percent rally this year that drove U.S. retail costs to the highest levels since the 1980s as surging corn futures prevent livestock producers from expanding their herds.
Santos Ltd. agreed to sell stakes in its Australian liquefied natural gas project to Total SA and Korea Gas Corp. for A$665 million ($660 million) to help fund a development estimated to cost $16 billion.