Think its found a good level around the $2-$2.30 trading band...

Think its found a good level around the $2-$2.30 trading band whilst we await further news and the turmoil in the world oil markets continue. Its even got to the extent that i now know what contango means given the lock step linkage to our SP to the oil price.

Its obvious to say this but Im expecting FERC and a binding EPC should be shots in the arm. To some who say the FERC approval is already priced in then I would counter with the fact that the FERC process costs tens of millions of dollars and provides a strong signal to the market on not only a key piece of regulatory/environmental clearance but also that the project remains economically viable with a good chance of success given the parties are committing to significant expense. Lets not also forget that FERC clearance is then going to get us way ahead in the cue for DOE non-FTA approval given the newfound focus of the DOE on concentrating on those projects that are commercially viable- i.e. those that have received FERC approval. Non-FTA approval opens up not only the markets that customers can ship gas to making Maggy even more attractive but also an increased toll fee based on what has been announced to date in respect of tolling term sheets. This could provide some fat to play with if tollers are driving a harder bargain on the tolling fee.

From then its on to the binding tolling agreements for the initial two trains and hopefully from then we will exhibit some of the immunity to the oil price that the Cheniere share price is exhibiting. LNG should change its name to Take or Pay Tolling Limited.

So despite the macroeconomic headwinds I can see why Maurice is saying he expects 2015 to be good one for LNG.

GLTA.