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4.3¢ liquefied natural gas limited

NAGF: Speaker Q&A Series – Greg Vesey, page-4

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3,407 Posts.

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05/10/17

09:01

Post #: 27671565
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Originally posted by mmartin ↑

This is jkerr7999 fantastic post which is hidden for some reason.

Good morning folks from beautiful, sunny Portland!

Want to weigh in on a few statements being loosely thrown around lately with not much thought/research going into particular posts. Fellow shareholders are entitled to their views, everyone has their own investment strategy... holding for the long run or looking to make a quick buck. But where i shake my head is when seemingly new shareholder entrants or shorters enter this forum with all guns blazing, making irrational, baseless comments about the company and GV - without showing any understanding of the current market environment, nor understanding the complexity of closing on BTA's which can take years to manufacture (balance sheet implications for both buyers & sellers), nor acknowledging significant milestones achieved to get us in-to this great position we find ourselves in. Yes, painful seeing the share price where it is but there's no way the true value of our company is being reflected on the ASX. The ASX is only to blame... not GV & Co for failure to clinch illusive BTAs, not the fundamentals of the company. When we switch over to the NYSE or Nasdaq, our SP will see a "meaningful uplift" in comparison to where we are today! Look where Tellurian's SP is for example... hard to believe their market cap is $2.25 Billion - having pre-filed in June 2016 with precedent indicating 14-17 quarters from then for greenfield projects, meaning possibly 2 years away from NTP - with no BTA's tied up! Yes, granted they do have Charif Souki leading the charge with also Total in their corner... who will probably kick start offtake agreements or contribute at one point. SP though is surely inflated!!

LNG LTD has always been a long term prospect, just taking a little longer than one would of hoped Magnolia would be under construction today had the great oil crash and market glut not arrived in late 2014. It was unlucky, unfortunate timing for MB - having locked in Meridian but not seeing the remaining dominoes fall in quick succession. Fundamentally nothing has changed - nothing has gone wrong to justify our SP sliding lower and lower... just purely unlucky we've faced a long, drawn out battle to secure BTAs in such a depressed environment.

On a positive note, truth is... the 2nd wave is coming and we're riding right at the top of it. The wheels are slowly but surely starting to turn and gather pace, that is evident by a steady flow of contracts being signed in Dec 2016 and in 2017 thus far;

Jera to supply Total with .4mt for 1-2yrs
Glencore to supply Egypt with 1.8mt for 2yrs starting in 2017
Qatar - Botas 1.5mt for 3yrs 2017
Origin - ENN .28mt for 5yrs 2018/19'
Jera - Centrica .37mt for 5yrs 2019
Qatar - Shell 1.1mt for 5yrs 2019
Gunvor - PSO .9mt for 5yrs 2017
Vitol - Adnoc .5mt for 10yrs 2018
Woodside - Pertamina .6mt for 12yrs
Gazprom - Ghana 1000mw (= 2.5mt) for 12yrs 2019
Petronas - PTT 1.2mt for 15yrs 2017
Qatar - Bangladesh 2.5mt for 15yrs
Eni - Pakistan .7mt for 15yrs
Petronas - SK Oil .7mt for 15yrs 2018
BP - PTT 1mt for 20yrs

Pakistan on September 29 2017 said it is in negotiations to secure an additional 3mt in long term contracts by years end.

Now... i would be concerned if the SP was this weak with future demand being shaky/ unproven & if we didn't have financial commitment locked in. But the fact is... future demand IS proven and Stonepeak re-signed to cover not just the original 4mt agreement but the full 8mt!! Between today and 2025 new demand will continue to sprout up, other than the 63 worldwide proposed terminals & 11 terminals under construction + China's 44 proposed terminals & 14 terminals under construction I shed light on in last report prior to this... EG; South Korean plans to build 5th LNG Terminal in Dangjin comprising of 10 200,00m3 storage tanks with 1.5mt to be constructed by 2025 and remaining 13.5mt by 2031. Or Punjab Government, Pakistan, sign an agreement with a Chinese company to set up a 1263mw (= 3mt) LNG Power Plant in Jhang, China.

Coral Mozambique is the only export terminal to reach FID in 2017 and only a limited number of proposed projects will reach FID over the next couple of years *which is to our advantage*. Both Magnolia and Bear Head are near the top of the starting grid, motors humming... alongside Goldsboro 10mt (20yr BTA 5mt with Uniper), Woodfibre 2.1mt (FID confirmed but no construction date set - 1mt HOA with Guangzhou Gas), Mozambique 12mt (Anadarko terminal, financing not yet in place), Fortuna 2.2mt, Corpus Christi Train 3 4.5mt (Fully approved), Sabine Pass Train 6 4.5mt (Fully approved). Only 8 projects are the best bets looking to reach FID by years end 2018... thats not many - with relatively small asking quotas - considering expected soaring demand to come.

And this is welcome news ---> 3 Queensland LNG ventures, Curtis Island, Pacific and Gladstone signing a deal with the Australian Government to sell their surplus gas at home over 2018/19'. Although this equates to just 2.2mt, the flooded market is quietly being mopped up! May good fortune continue...

How effective is GV's marketing game?? No one knows what goes on behind closed doors... but in the end it won't matter because buyers will have no choice when they become aware demand will overtake supply by 2022/24! As long as GV keeps persevering, remains 100% committed to getting the job done... worst case scenario we CR for 6-12 months through 2019... it truly is a matter of "when" not if!

Having touched base with G, another conference call is on the cards shortly.

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Thanks for reposting this, hits the nail on the head.

The threads have become quite a strange place lately so it's refreshing to finally read someone with greater perspective beyond unfounded 'what ifs'.

LNG have indeed reached many milestones in the past 18 months.

Cheers

LNG Price at posting: 42.5¢ Sentiment: Buy Disclosure: Held
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