At last, a place of our own, free of FRO longs drooling over the size of the forthcoming dividends...
Here is my last post on FRO about GLNG...
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"This is NEVER going to work. If Golar can buy the LNG cheap, NO WAY a customer is going to pay big time for it."
Could be true, but it depends on who the customer is, who owns the terminal, and what the oil majors are doing. If someone owns unutilized terminal capacity, and ships are tight, then it could happen. I agree that it won't easily happen, but I'd like to hear why, based on your knowledge of LNG production/terminals, you completely reject the possibility. The majors sign contracts for long-term LNG supply, not sure how much flexibility they have to divert a cargo to a more profitable destination. Oil traders often "trade ships" -- they can reap huge windfalls by having the only ship in a position to move a "must-go" cargo ... I would not dismiss the possibility out of hand that same could be true for LNG vessels.
The "extra capacity" delivered at the end of last year easily found short-term employment. If the floating terminal project gets up and running, it will require at least one ship (which would be converted into the actual terminal) and presumably other ships to service it. So a long-term immediate charter to ExxonMobil would be the last thing I'd be looking to do right now if I were Golar.
Any case, guess it's time to take this discussion on to the room of our own that Yahoo has so graciously created, and bid a fond farewell to our FRO brothers and sisters. Go FRO!! Go GLNG!! And don't forget to write...
Glad to see you on the board bubba... you're right, we're all in this together, and I'm still rooting for FRO while simultaneously kicking myself for not following the gut feeling I had to buy recently when it dipped into the $25-26 range.
On the bright side, there has been lots of happy news about GLNG's price.
Further to yrs re: Golar and energy trading... there are certainly risks involved... if JF gets in he'll need to hire away the talent from somewhere. Probably not too easy, as LNG trading is a nascent field. Last year they did hire Charlie Peile away from Clarksons, where he was head of LNG Shipping Solutions division... they've certainly got deep experience in the transport side, but there's probably still room for improvement on the trading side.