MB is drawing down the whole lot from Stonepeak in one hit (eg circa $800m) for Phase 1 and 2 so he is looking to maximise the drawdown, not reduce it which makes perfect economic sense.
Intel, you cant just make investors step into the role that Stonepeak are playing at the time of Financial close- we wouldnt get to FC in the first place if the equity wasnt where (eg equity begets debt which begets BTAs which begets EPC etc etc). As well, when Stonepeak actually pay their cash the project wont be 100% valued given construction risk. So even at that point in time i would prefer Stonepeak's IRR capped commitment.
LNG Price at posting:
$4.65 Sentiment: Sell Disclosure: Held
