** Morgan Stanley expects project sanctions by Australian
energy firms in 2021 due to solid outlook for LNG prices
    ** Spot LNG prices spiked in the December quarter and into
January, driven by strong demand amid a winter spell in north
Asia and a supply squeeze
    ** Whilst the spike is likely short-lived and appears to be
receding, a better LNG outlook is coming - MS
    ** Says higher LNG prices also provide a better backdrop for
project sanctions, including Santos Ltd's  STO.AX  Barossa and
Woodside Petroleum's  WPL.AX  Scarborough
    ** Barossa and Scarborough on track for final investment
decisions in H1 and H2 of 2021, Santos and Woodside said in
their respective quarterly production updates on Thursday
 urn:newsml:reuters.com:*:nASX6bwbYz  urn:newsml:reuters.com:*:nASX1lcZpM
    ** Says Woodside retains the most leverage to higher spot
LNG prices with ~15-20% exposure in 2021, compared with Santos
and Oil Search  OSH.AX , which are close to ~10% 
    ** Karoon Energy  KAR.AX  broker's top pick amid small caps,
while Santos is most favoured among large caps

 (Reporting by Shruti Sonal in Bengaluru)
 ((Shruti.Sonal@thomsonreuters.com; Twitter: @shrutisonal26))