lng prices, page-21

"Also making ANY gas that ICN can provide, based on the Singapore Tapis oil price will be extremely welcome by the plant operators and will be in huge demand."

another generalisation.

why would gas based on Tapis Oil pricing and processed into LNG be in "huge demand", when a buyer can purchase the same LNG from a supplier out of the USA who is supplying the gas based on a price related to their Henry Hub price? When the Henry Hub price is something like US$2.00+ now?

Who says the Chinese customer will even want to persue this GSA with its pricing Tapis related, when it might be able to secure a similar GSA out of USA at far, far cheaper prices?
And don't use the arguement that the ICN has a binding contract, because it doesn't yet, and between now and unconditionality, you can bet ICN will be looking for amendments etc, which will give the Chinese some negotiating room.

What thepinto is talking about, is whether the ICN GSA has a "floor price"? And we simply do not know the answer to that question!

I will bet there are many, many issues within the GSA of which we s/h are unaware, which may be critical to whether the GSA is "commercial" or not. We simply don't know, and are relying on the ICN Board to have covered them all. And thats a concern in itself.

The main plus I can see in this GSA is the time factor - I am sure it takes a huge period of time, much money and heartache, to execute a GSA with the Chinese. In this aspect, if the GSA is commercial, the ICN GSA must have some value simply because any gas supplier/LNG producer can get at least a 12mth jump start on competitors.

cheers