I just look at it like this. natty will be $2 this summer, chineese, europe paying $18. ok, what does this company do, export nat gas. that is 9 fold. 9x16=144. this will be big, the USA has never been in the history of the world, an exporter of nat gas. no matter what you may think, the facts are simple. no matter if every car from here on is made to burn nat gas, every car being driven is converted to nat gas, greed and economics will drive this model. the gas will be sold to the highest bidder, simple. the government is all you have to worry about as far as margins go. they are wise to these facts too, will find a way to skim the top, fund - reduce the national debt with this, but these things remain to be sorted and seen thru. bottom line , 90 - 100 dollars is reasonable. it will come.
Not quite the way it works. The agreements signed by Cheniere are FOB meaning the ownership transfer point is when the LNG transfers from terminal to ship. Cheniere's revenue stream from the project has no linkage to international LNG prices. Their revenue is the use-or-pay tariffs that the 4 off-takers will pay which ranges from $2.25/mmbtu - $3/mmbtu depending on which of the 4 contracts you look at.