MLNG responds to FERC Info Requests, page-21

So the thinking is that I dont want to sign and to commit to Magnolia because Im not sure if FID will be reached and this may mean I miss out on other projects? I would think having a sunset clause for FID like Meridian would largely minimise this risk and if the concern is actually reaching FID which the act of actually signing vastly helps, then doesnt it make sense to actually sign something to ensure the project has a greater chance of getting up?

I think based on all the huff and puff from our former management that Im questioning whatever management says.

If I was a customer I wouldnt easily give up my bargaining position in the current climate by signing too early and not extracting best commerical terms. Use leverage to get a discount. If this is so then incentivise one of them just like we did for Meridien to get the ball rolling on the other BTAs if all it takes is one person to sign to get the rest. Create an incentive to sign on the first one to make it back on the next customer then. If it means we end up owning 45% of the project instead of 50% given the IRR target in the Stonepeak agreement then so be it. Or as I mentioned previously a tolling term that is indexed to say Asian LNG prices- eg $2.60 if its less than $7 but $3.10 if its greater than $7 or something similar on a scale. i would think this would be a bankable. A smaller percentage of a FIDed project is a lot better than the current market cap. And if management is waiting for the LNG price to recover to sign customers then they could be waiting for while to at least past 2020, commodity cycles take years to turn around- but then we would have Bear Head in play to capture any LNG recovery if we get Maggy up now, with the capital to develop BH through cashflow.