02-20-2013, 03:55 AM
'trans' pid='17541' datel Wrote:I may be wrong, but I would never try to value on commodity spot prices. I have focused on the long term contract basis, which I believe is likely in the $11-13 eventually, especially when new production comes on line, say 2015-17. That's still a lot of money for IOC. imo
Agree Tran, there has been a shift in recent years to medium term LNG contracts and players dabbling in Spot Mkt. to supplement supplies, Those buyers have been burned. I recall IOC intending to hold a % of production for feeding the Spot Mkt. where larger returns will remain for years. I'm happy to leave these details up to Conrad Kerr! He's likely greedy too.