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Window Of Opportunity

SFN - August 2012 - Today it was announced that Santos and GLNG partners have advanced discussions with offtake partners and expect to FID GLNG Train # 3 in the coming weeks.


So when we finally read those words, what is going to happen, what will already have happened, and most importantly in a market where timing is everything, WHEN will it happen?

WHEN
BG have come out and announced an 18month woo for their QCLNG3. If we apply the same ruls for Santos to get the enhanced economics from production sequencing of their LNG facility; this pitches them to have FIDed GLNG#3 by mid to late next year.

(side note on BG-new NED on the board for BG is the CEO of Schlumberger-pioneers in shale techniques. Further, there is more talk of LNG coming out of the USA if this is any indication of how big shale is)


WHAT WILL?
So before this time, what must they do? Well imo, it seems likely they will have to have established both customers, as well as where they are going to be seeking the reserves to support such an expansion.

Unfortunately, their current reserves position does not seem to support this.

this raises two important questions:
How can Santos sign customers without having the gas?
How can Santos buy the gas cheaply without letting on they really really need it?



The fictional story above, as reported on the SeamFiendNews network, is but one scenario I am keeping an eye on as a catalyst for ESGs edibility to be tested.


Giddyup LNGN.


SF