ETE, ETP & BG LNG at lake Charles, page-8

Let's take stock for a moment in the light of the media releases above.
http://www.bg-group.com/~/tiles/?tiletype=news&id=809
http://finance.yahoo.com/news/energy-transfer-announces-lake-charles-203200952.html
I think these media releases are timely and good for LNG Ltd and should help dispel some unfounded worries and irrational fears that seem to have built up an atmosphere of unwarranted negativity here about LNG Ltd.
Watching LNG action over the last three months reminds me of a mob of sheep. One of the lead sheep will jump and then all those behind will jump over the imaginary object as they pass forward over the same spot. Or one of the lead sheep will take fright and change direction, steering the whole mob although there may have been nothing to cause concern in the first place.
I can only recall one substantial shareholder notice in the last three months or so - and that was Valinor increasing their holding. Thus, our major institutional shareholders aren't bailing out, so why should all the small shareholders do so just because a few smart alec's are talking down the prospects of LNG Ltd and reckon they can read the future in their charts. Personally I reckon they should try something else: like tarot card & tea leaf reeding. I consulting the ants and the bees would give me a clue. The ancients thought they got a hint from slaughtering sheep and examining their entrails.
From Accas' data we are seeing a significant sell off by Aussie investors through their chosen brokers and advisor's with those shares picked up by more savvy American investors. I personally find it sad and depressing that Australian institutional investors and financial advisers are so short sighted and lacking in vision and wisdom. They abandon Australian success stories at the first sign of a set back and have missed so many corporate successes to the detriment of Australia, its investors and to the benefit of those overseas. They don't seem to grasp that success is not selling out and being taken over at the first opportunity but in developing a major enterprise that can keep giving and generating profits over the long term.
What this news confirms and we now know from other sources:

• One can get a FEIS approved for an export LNG operation in the Lake Charles district (theirs was mid August) - which is where LNG will also be operating and is on schedule to get their FEIS mid November. That is, the chance of environmental activists heeding progress is zilch and the local, state and federal government demeanour is positive. So why would any investors worry about LNG Ltd's ability to achieve this as well?
• These major companies and their investors are not deterred by any speculative negativity about the future for gas & LNG demand & prices and whatever else - so why should LNG Ltd & its shareholders be?
• They confirm the 90 day period from FEIS to FERC approval that MB & LNG has informed and reassured its shareholders about repeatedly. So why should LNG Ltd shareholders doubt this is the case?
• They are planning a 15 mtpa project and are not deterred by selling that much LNG, so why should LNG shareholders doubt that LNG Ltd's clients can sell a mere 8 mtpa, particularly when LNG's timetable puts them 18 months to 2 years ahead in getting product off to market?
• Because of its nimble lower capital and operating cost and faster construction modular design, LNG Ltd will get Bear Head (8mtpa to 12 mtpa) up and running as well before this rival Lake Charles LNG project.
• Remember LNG's business model for these projects is currently to be only a utility - processing the gas supplied, owned and sold by others. Thus not being directly exposed to commodity price volatility or currency risks. Although recent media releases indicate they may be flexible on this point in an opportunistic sense for marginal production volumes. So LNG is not directly impacted by any price volatility for gas. Possibly their BTA tolling fee may have some level of accommodation for gas price variations, but this has not been stated and would work in LNG's favour going out for 20 years. So why are investors fearful and transfixed by oil prices?
• LNG contracts are very long term - 20 yrs plus - and they dominate the trade. Spot marketing of LNG is not that common. So why are investors so worried about the transient oil price?
• These media releases show that BG's plan has been to link up with gas suppliers and pipeline carriers - providing confirmation of LNG Ltd's strategy of tying up with Kinder Morgan for the same reason. Another feather in LNG Ltd's cap.
• LNG has developed strategic alliances with some other really major companies in the LNG area - such as KBR & Siemens as well which are a huge vote of confidence - so why the nervousness and negativity of Australian financial services companies? They probably haven't bothered doing much research on LNG or gone for a site visit - too busy doing lunch.
• They also give reference to the 'master limited partnership' which is a more tax-effective corporate structure that MB has indicted will be considered by LNG in the course of events. Potentially it would have LNG Ltd shares trading on the equivalent of a 15 p/e ratio on EBITDA rather than about 8-10 p/e.
• Don't forget that the low A$/US$ exchange rate is now considerably more favourable for Aussie shareholders now than in April when the shares hit A$5 each. And LNG has announced a number of significant milestones reached since then. So why the negativity by Australian shareholders?
• I hate seeing my fellow Australians talked into dropping the ball so easily only to be picked up by our USA cousins. Are we so dumb and they so much more sophisticated and knowledgeable than us?

Enough for now. I'll think of other stuff later no doubt.