Gulf LNG has minimal Spot competition <$17/Mcf

[Tree]

Asian spot LNG prices are at a 2 yr. low today @ $15.15 down from $19.40 last Nov.

They are predicted to head north of $20 in a bit.

The ironic thing is if Asian spots hang around curreent $15+ pricing then Asian originated cargoes, think AU and PNG, do not have competition from producers in other markets.  So lower prices help Guf LNG generated spot cargoes and IOC stated they would maintain (from memory) ~20% production for spot trade.

$3/Mcf will deliver LNG cargoes shipped from Atlantic market to JP/SK

$2.75/Mcf delivers LNG shipped from Trinidad

$2.00/Mcf will delivers LNG from Nigeria

Nigeria and Trinidad provided 25% of spot cargoes in 2012, trailing Qatar.

Asian LNG producers  will not have spot competition until spot prices reach $17+.

Who couldn't live with $14.385 slope and $17 spot cargoes?

Who wouldn't be happy with $/Mcf SD at the shipping differentials of $2-$3/Mcf??

[ArtM72]

Tree -

Are you also encouraging us to do the arithmatic:

$15 sale price
-$1.50/mcf delivery
-$4.00/mcf capital and production
= $9.50 net margin???

How about being happy with selling the gas off at 50% net margin? Ok, not being greedy I suspect we could live with $3/mcf just as well.

I'm getting awfully tired of waiting for this thing to happen. Que syrah. I think I'll bottle beer instead of watching SHU tomorrow.

[Tree]

Hey Art I'll send you my empties.
Dealers choice will be ok.

[Hoosier1]

Tree - Are you also encouraging us to do the arithmatic: $15 sale price -$1.50/mcf delivery -$4.00/mcf capital and production = $9.50 net margin??? How about being happy with selling the gas off at 50% net margin? Ok, not being greedy I suspect we could live with $3/mcf just as well. I'm getting awfully tired of waiting for this thing to happen. Que syrah. I think I'll bottle beer instead of watching SHU tomorrow.

Art... nice play on words???  Que syrah vs que sera... You should be drinking wine instead of bottling beer