I thought it was a well put together presentation of our current standing. Yes, a lot of it is nothing new but they are certainly adding more and more information to keep us well informed of the ever changing market environment while giving accurate findings into future outlook/demand. Also thought Timbo's points that were raised to GV where absolutely spot on... in reference to, "if the board, directors and key staff are suitably compensated, acknowledging the reduction in salaries in terms of performances rights... is it in good conscience when the share price performance has fallen, regardless of where the company is right now (arguably stronger than it has been), that you should be putting to shareholders the notion of having performance rights, none the less should be awarded at a level that is clearly out of whack with the fortunes of the company right now" ?
Response... there this a 3 tier renumeration policy: Base salary. Short term incentives... in which there are 2 corporate milestone objectives 1. offtake and 2. liquidity, so to the extent we don't accomplish that then their annual bonuses are effected by that. Long term incentives (share rights)... GV states " its not granted till its actually earned so it hasn't been a good story and they (board, directors, key staff) are feeling the pain we're all feeling from the stock ". Over the last 2 years no-one has earned share rights & the board/ non executive directors took a 20% salary cut last year plus a 10% reduction in cash, share rights in 2017 .
From the presentation I...
* Liked the current offtake discussion graph.
* Think it was a great step in taking the initiative to bring in a new hired gun to help "revamp marketing efforts"... although in making that appointment makes me wonder how close we truly are to closing deals?
* Like that the company is focused on extending our liquidity runway past the end of 2018, which is of vital importance. If we could raise enough capital (if needed) to see us through to the end of 2019 or halfway through it would be inconceivable to imagine we won't have BTA's locked in by that extended timeframe.
We should be the No.1 project in the US buyers are looking at, in consideration of the following;
- Level pegging with Delfin as the lowest cost proposed project.
- Full Regulatory Approval.
- EPC Contract locked in.
- Stonepeak $1.5 Billion commitment to fund full 8mt.
- US has low cost natural gas linked to Henry Hub which is invaluable in giving us a competitive advantage against global competitors...
- Lack of new FIDs will quicken the swing to an undersupplied LNG market.
- Expansion of the Panama Canal has reduced shipping times from the US:
To Japan 34 days around southern tip of Africa or 31 days via Suez Canal to just 20 days.
To South Korea & Northern China 33 days around Africa or 30 days via Suez Canal to 22 days.
To Taiwan 31 days around Africa or 28 days via Suez Canal to 23 days.
To Southern China 30 days around Africa or 27 days via Suez Canal to 24 days.
Japan offering $10 Billion in support in joint private enterprise and government projects to supply LNG or build LNG infrastructure in Asia. Finance will go towards upstream, midstream and downstream LNG projects to help spur demand.
While its fact demand in China, India in particular is in the process of surging and will boom!! The Chinese and Koreans are looking very hard at US LNG projects, in the $2-3 Billion small scale range to get a foothold in the US market to then grow and use this as the basis for upstream investment (e.g. in actually the gas field). They are said to be meeting with every terminal and export developer in North America.
South Korean President Moon Jae-In shifts energy policy away from coal to LNG.
Delfin signs MOU with China Gas Holdings for 3mt 15yrs starting in 2021.
Venture Global Calcasiue Pass signs SPA with Edison for 1mt 20yrs starting in 2021.
Cheniere supposedly having signed MOU with CNPC with no terms released.
Asian spot prices have climbed to $8.50 mmbtu, their highest since January and 55% higher than 2017 lows. This is on the back of surging Chinese demand amid its huge programme to move millions of households away from coal to gas heating as well as a push for LNG as transport fuel. Demand for LNG trucks is soaring as companies and manufacturers shift to vehicles that run on the gas that Beijing sees as a key part of its war against smog. Sales of these trucks surged 540 percent to nearly 39,000 in the first seven months of the year, according to Cassie Liu, a truck analyst with the IHS Markit consultancy. That was partly fueled by a ban this year on the use of diesel trucks to transport coal at northern ports in provinces like Hebei and Shandong, and in the city of Tianjin.
“We are seeing a blowout in LNG trucks this year, thanks to the government’s policy push,” said Mu Lei, marketing manager for China National Heavy Duty Truck Group [CNHTC.UL], known as Sinotruk, the country’s largest manufacturer of heavy-duty trucks.
The shift to gas trucks is helping fuel demand for LNG in China, as are other government measures aimed at clearing the air, especially in the north, which is shrouded in a hazardous coal-fueled smog for much of the winter.
Prices have also been supported by strong imports from LNG buying giants Japan, South Korea which have been stockpiling in preparation of the peak-demand winter heating season.
The noise circling around us is getting louder and louder... hard to ignore!
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