STO - BUY IMO, page-36

Reading the excellent previous article you posted by the commerce commission STO has enough contracted gas for GLNG contracted output in the short to medium term.
As I said earlier.
I don't think the Australian government would be stupid enough to interfere with these arrangements because where does it end?
More likely outcome is a requirement on companies to spend more on exploration and a loosening of requirements there.
I would like to see that myself.
These gas prices were always the end game for the STO dog it just happened to coincide with O&G slump - hence the issue with less gas noted as in the report.
As I also also noted this won't last forever, oil markets are gradually tightening spending will recover.
Will the joint venture partners force STO to run GLNG at a loss?
I would argue no because it is not in their economic interests. That's an unequivocal no.
Will STO agree to renegotiate supply contracts $100m US loss of income because of gas shortages in Aus, not unless govt coughs up for that I would suggest.
V_H I would argue the scenarios you raise are not base case they are worst case and not IMO realistic.
Some $5.4bn of the $7bn U.S shareholders equity is in the GLNG so it's fair to say it dominates.
However the fact that they took $1.5bn U.S in impairments last year gives more confidence in the value.
When a stock's price is in the doldrums everyone looks to the worst case scenario. Cheer up people.
The worst probably won't happen, the sun will rise tommorrow. STO can invest for more gas, the overall industry will recover.
The government will act to serve its corporate overlords.