Ann: Senex and GLNG amend WSGP gas sales arrangements, page-12

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rollacoaster

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11/09/18

19:52

Post #: 35531753
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Originally posted by tt2000 ↑

It is very likely that FID for the full 50TJ was not going to be approved at GLNG's contracted price.

So SXY split into two deals - 16TJ for which FID can be approved, and the remainder to be contracted at a commercial rate (with which GLNG is able to match - hence the last right of refusal).

From GLNGs point of view, they had to accept it as SXY had a condition precedent to the agreement, being FID, which wouldn't have been approved for the full 50TJ.

This should just about ensure that FID is reached soon for the 16TJ, which is probably what is holding up financial close for the financing.

I think (and hope) we will see this imminently now, and hopefully some answers to what we are all awaiting (FY19 outlook etc.) If this occurs (and all information is postivie), then I agree with pac about launching into orbit.

Patience is needed - but mine is at breaking point, especially with ID, who I am convinced could have got this launching sooner...

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The original GLNG deal was based on JCC oil linked prices, which would be decent prices given they are oil linked and the POO is doing ok/good. Senex have advised that the new 16Tj deal is at similar/same price as the previous deal.

Any volumes sold externally of GLNG are likely to be sold at a higher price than what was available via the old GLNG deal given the tight gas market so this is probably not a bad thing.

Last edited by rollacoaster: 11/09/18

SXY Price at posting: 44.0¢ Sentiment: Buy Disclosure: Held
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