The previous Presentation (not todays one) finished up with..
"The advent of FSRUs will facilitate and expedite the implementation of smaller projects".
What are these? -they are the plants on selected wharves ,to which berthed LNG tankers are connected in order to let the LNG exit the tanker and enter the receiving countrys natural gas reticulation (pipeline) system.
e.g. at Osaka or other main port.
These FSRUs can now be built for about half the cost of the wharf-based plant.
What is highly relevant for HZN is that when it comes to export the Daru LNG,,from a floating plant, it will want to start dropping of cargoes (in mid-sized tankers) at various destinations,starting close to home where the harbours arent very deep. What is likely to happen is that where a new industrial estate has been created ,say,on the Indeonesian coast but with a shallow harbour,an FSRU is likely to be brought in to allow the gas to get to the estate,and other estates beyond.Thus the gas doesnt have to be "wharfed"at a main (deep harbour) port and piped to the estate.
Thus HZN etc. can service customers soon after the tanker leaves Daru - a "cream run". Such a local situation cant,I suspect ,be matched by the gargantuan tankers bringing gas from,say Canada.
New Canadian LNG plant plans are being shelved,in most cases, until LNG prices recover quite a bit
The Daru project entails building a floating plant in a shipyard,to a tried and proven plan,under a fixed price contract ,using "old" technology.
You dont have to look far to see that the Daru project will have a lot of the risk taken out of it.These FSRUs could form the basis for a new way of handling the delivery of LNG to smallish customers who are miles from a main port. I cant see how HZN etc. couldnt make a go of it,even if LNG prices stay down,provided the estates mentioned are big enough to permit a FSRU etc.etc.
Daru has a "safe" label on it. As for the huge Canadian and Oz projects-they are the risky ones and are being abandoned in big numbers.No surprises there,IMO
HZN Price at posting:
5.8¢ Sentiment: Buy Disclosure: Held
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(20min delay)