Ferc, page-17

In the end success or failure of any business depends on competitive business/cost models. You are in trouble if somebody can produce the same thing at a much lower cost than you can. I was under the impression that LNG will be able to produce at around $450/tonne/year. It would seem that Excelerate Energy may have been looking at $600/tonne/year (see link below and quote from that article)

http://www.gastechnews.com/lng/browse-decision-highlights-cost-benefits-of-flng/

In contrast with Shell, Excelerate Energy has been very open about the expected costs of its Lavaca Bay FLNG project, a near-shore development in the US. Front-end engineering and design (FEED) was completed in February, and the company now claims to have plus-minus-10% estimates for capital costs. In coming up with the cost estimates, Excelerate worked closely with Samsung, which is to build the hull for the project, and Black & Veatch, which will be doing the topsides.
“We’re very comfortable with where we are,” says CEO Rob Bryngelson. “We are going see ourselves at less than $600/tonne/year, all in. That includes the land-based infrastructure that we have to dock to, the vessel, everything. We’re looking at a 4.4 mtpa project so it should be right around or south of $2.4 billion.”

We will have some tough times ahead but ultimately the world will need energy to live and grow, and energy that is as clean as possible, and affordable. Natural gas/LNG will be an important part of the world's energy supply. At this point of time there are good reasons to believe that companies like LNG will be part of that. On the other hand, there are good reasons to become a little more pessimistic with regards to high cost operations like the Australian liquefied gas initiatives based on CSG supplies including our own FL project (which currently has zero value in the LNG share price valuation anyway)

Happy new year everybody

Go LNG