LNG 0.00% 4.3¢ liquefied natural gas limited

I'm sure that LNG's management have robust processes in place to...

  1. 365 Posts.
    I'm sure that LNG's management have robust processes in place to ensure that any new project is put through a rigorous opportunity/cost assessment before a commitment is made.

    This would apply to FL.

    Emotional or historical sentiments will be ignored. Any decision to proceed will be based on the project's potential contribution to the company's bottom line over the long term, in combination with other considerations like the "strategic fit" of the project.

    I'm sure that LNG has presented Arrow with it's estimated tolling charges for FL. These charges would based on an expectation of robust financial returns over the long term.

    Arrow will be faced with a decision whether to put the gas through FL under a tolling agreement or sell the gas wholesale to a Curtis island operator. This decsion will be based on what achieves the best economic returns.

    The interesting thing about FL is that it pitches OSMR technology against the big boys. If they decide to put it through FL, this is a huge endorsement of the economics of OSMR technology.

    From this point of view, I'm hoping that FL gets built. I'm suspecting, given the scarcity of gas and Arrow's relative bargaining power, that it wont.
 
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