It’s true that there has always been a reason that we need to wait. First it was low oil prices - waited years for this to get sorted out. Then it was nobody wanting to sign because of the gas glut and low spot prices. Then it was the Europeans saying they wanted to diversify from Russian gas but not wanting to pay any more to do it. Then it was the China US trade war. Been waiting a year for that to resolve.
On the face of it all good reasons but it has meant 4 years have gone by and no deals
However. In my view the China strategy of GV makes sense as China is expected to buy much more US LNG under the terms of the trade deal. And we have powerful friends in China. Plus we are very competitive on price. Good reasons to believe we are close.
As we wait on the trade deal I remind myself that nobody can know the day or the hour when it will be settled. Been 4 weeks away for a while now! So we must just keep waiting.
After the trade deal is settled we then need to close the sales to the Chinese which may not be so easy given that deals are being done by competitors at seemingly unprofitably low levels. But at least we will get a shot at the title and hopefully we will come out swinging.
Lets hope the June trade deal signing is still on the cards.
LNG Price at posting:
45.0¢ Sentiment: Hold Disclosure: Held
