Ann: Investor Update Presentation , page-32

Its OK Stayer we see the GSA differently.

I see it (in case ICN finds no gas to sell in its permits) as the ability to Broker a deal with someone who has gas to sell to a LNG facility. The options are:

1) Existing LNG train with "spare" capacity to sell.
2) Existing LNG facility wanting to expand (and another train)

The key is simply that the sell side has been done - IF - for ICN its gets 2Tcf of 2P Reserves that it can sell.... AND on the buy side that Shantou gets its permits to import LNG.

I don't think CVX is going to cut itself out of anything. If they see the option(s) that ICN has as attractive then they deal - its the game they play at level we cannot comprehend.


Here's an example -
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/kitimat-lng-closer-to-reality-as-chevron-to-buy-out-encana-eog/article6699799/

"Apache Corp., which had previously led the project, had not signed a single “off-take” agreement to sell liquefied natural gas to Asian buyers. Apache had expected to make a final investment decision in early 2012 and has spent hundreds of millions of dollars to prepare its site, not far from Kitimat, B.C., for construction. But without sales agreements, making a decision to build the project has proven impossible."

"Chevron, however, is a major global LNG player with an interest in a half-dozen global projects, including two that it leads. In the LNG industry, which typically operates on lengthy contracts, buyers are often more comfortable with large industrial players with a proven record of delivering energy on time. Chevron’s heft is a sufficient boost to Kitimat LNG that Apache now says construction is all but a foregone conclusion."


That's why I value the sales agreement ICN holds.