@doctornoh @jkerr7999 A few additional points to note: 1. VG yet...

@doctornoh @jkerr7999

A few additional points to note:

1. VG yet to announce a binding EPC contract (presumably underway, GE appointed Mar17);
KSJV bankable EPC complete

2. VG raised $470M between Oct17-Nov15 ($109M Oct17, $82 May17, $15M Aug16, $55M May16, $85M Jun15, $125M Feb15 i.e. ~$20M burn pm!)
LNG.AX cash burn $5-6M/QTR. Multiple funding sources available

3. FERC’s Notice for Environmental Review (29/11/17) states DEIS (due 31/3/18) has not yet been issued, meaning FEIS (3/7/18) and 90d Federal Authorisation deadline (1/10/18) will be delayed. Non-FTA yet to be issued.
MLNG FERC NTP approved

4. VG’s website (states FID & Construction 2018 with commercial operations 2021) will need updating to align with the Galp ann. start date 2022)

5. Importantly Galp SPA subject to usual CP (see Cheniere footnote 6 below)

So pressures to deliver remain even with 25% of 10mtpa total capacity contracted (which coincidentally MLNG has).

As GV has previously mentioned, there’s a lot of noise out there (another example being TELL’s claim of lowest cost. matching MLNG’s low cost status (but only if/when all phases are factored in - yet bankable EPC pending).

Now look at Cheniere’s SPAs for Sabine Pass below and compare the impact of the 50c pricing difference between GNF & KOGAS, whose purchases each equate to 3.7mpta and annual fees paid. Add 10% to get to MLNG’s 8mtpa capacity.



No wonder GV is holding the line on price … that’s $100M p.a. every year for 20 years (or 5o% of our current MC)

Put it another way, annual revenues are $1bn or 4x our MC p.a.

And what did MB say all those years ago about the US rating for infrastructure stocks … 11x if I recall.

No wonder GV is playing hard ball … and helps to provide perspective to his recent comments in the latest Quarterly namely ... After the end of a cold winter across key LNG import markets and a long-term outlook of demand significantly outpacing supply, we remain confident that the market continues to move in a direction advantageous to LNGL. We seek your continued understanding that offtake agreements are significant financial commitments for buyers, and therefore can become protracted.