Think Before Buying LNG

I didn’t mean for that last post to turn into a betting competition, just wanted to post a link to positive news in keeping with trying to stick to the facts. It’s nice to see the shares going up, but given all the gambling going on, here are a few other things to consider:

1. In GV’s “2016 Year In Review” his statements include third party information delays relating to the KSJV extension, and finalizing offtake agreement efforts, not offtake agreements
2. One of the delays above relate to the latest FERC filings and seem to imply some uncertainty regarding KMLP and the SPE and LCE projects. Point in question: The fact that KSJV have a separate contract in place for just the Sabine Pass Project.
3. Another delay related to the FERC’s Engineering Information Request, to which LNG’s response was ‘Confidential’
4. LNG LTD may have just paid LNG Industry Magazine to have their picture on the front cover as well as the ad for KBR on the inside cover

On the other side of the coin:

1. The FERC’s Engineering Information Request for clarification on 07/12/17 only included four points that seem easy enough to remedy
2. The 56 page Army Reply was comprehensively detailed
3. There appears to be no reason for not issuing NTP
4. The likelihood of additional binding offtake agreements, FID etc after that appears almost certain (and if not, there’s always the old T.O.)

We could also take into account that Cheniere Energy is US, carrying a large debt, has offtake agreements signed, is rapidly heading towards bringing their next train into commission and would be favoured by the Trump administration over LNG LTD (possibly adding to delays). Considering these things and the fact that while the ASX is going down today and LNG is going up, I’d say it’s going to keep going up, but in the words of Frank Drebin, “I wouldn’t wait to fill out those organ donor cards!!”