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120s here we come , page-11

  1. 259 Posts.
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    goro, usually you want gas locked in prior to FID given the huge expenditure to build the LNG plant, port, shipping, pipelines, field development etc.

    Further, you want the gas locked in as the LNG Project is underwritten by long term LNG Sales and Purchase Agreements (SPA). And if you cannot deliver on your LNG SPA you have to go into the market and buy spot cargoes. Post Fukushima, this is not a cheap option.

    As Don Voelte pointed out, the haste to develop the CSG LNG Projects is now starting to have adverse ramifications for some proponents. Especially those short of gas feedstock.
 
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