LNG 0.00% 4.3¢ liquefied natural gas limited

G'day Doc, The 20yr, 1mt Galp deal with Venture Global can only...

  1. 97 Posts.
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    G'day Doc,

    The 20yr, 1mt Galp deal with Venture Global can only be seen as another positive for our company moving within touching distance of signing SPA's. 3rd deal this year signed with a US company on 20yr terms! Shouldn't be concerned that Venture Global is behind us signing contracts... yes, if their proclaimed liquefaction fees are set at $2-$2.25 and this is indeed true, they are undercutting our protracted price range. But, their estimated EPC costs for 10mt terminal is $8.5B, nearly double ours, so they could run in-to trouble when looking for financing from the banks. GV has mentioned before that it would be a disaster to sign bargain basement deals for the banks to turn around and knock us back, hence he's holding strong on price!

    Bear in mind that when Cheniere signed up 6 contracts for Sabine Pass their avg price was $3/mmbtu (bar 2 contracts with Shell $2.25- $3 & Natural Gas Fenosa $2.49) while at Corpus Christi all 7 contracts were at $3.50/mmbtu... those were golden days!
 
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